Bank of Cue CEO Brian Moynihan warns the long-term government shutdown drags on the US economy, delays deals, Free IPOS.
The ongoing government shutdown delayed the release of the Treasury Department’s first estimate for the third quarter gross domestic product (GDP), as other data sources suggest strong economic growth in the quarter.
The Bureau of Economic Analysis was scheduled to release its forward estimate of third-quarter GDP on Thursday, although a staff drain was deemed unimportant to prevent the agency from compiling and releasing the report.
An agency of the Department of Labor, the Bureau of Labor Statistics, also missed producing the September jobs report due to the shutdown. However, the need to produce the September consumer price index – which is an important part of the adjustment of annual security costs (cola) – revealed that the labor agency temporarily returns to be able to publish this inflation report.
Despite the lack of an official estimate of GDP ENGCEATE from the ministry of commerce and the uncertainty of when the government shutdown will end to allow its release of GDP for the third quarter published by the pair The Federal Reserve banks.
The Fed is cutting lending rates for the second time this year amid weakness in the labor market
The ongoing government shutdown has delayed the release of key economic reports, including the third quarter’s real gross domestic product (GDP). (Spencer Platt/Getty Images)
This page Federal Reserve Bank of Atlanta It has a forecasting model called GDPNOW that acts as a “Nobcast” of the actual domestic product before its release.
While not an official forecast, the Atlanta Fed explains that GDPNOW “is best viewed as a practical estimate of real GDP growth based on available economic data.
The latest Atlanta Fed’s GDPNOW estimate from Oct. 27 Enter the third GDP GDP at 3.9% for the quarter.
Inflation remained above the Fed’s target in September before the decision to cut the rate
The government shutdown began on October 1 and democrats and democratic lawmakers remain under-funded. (Demetrius freeman/the washington post via Getty Images)
The Federal Reserve Bank of New York also publishes staff now, which is a little different because it includes bands of GDP growth opportunities in the middle of the GDP on both sides of the equation.
This page The New York Fed’s Labor now estimates that on Oct 31, the third quarter GDP grew by 2.35% with a 50% chance that GDP growth will be between 1.32% and 3.41%.
Powell warns to shut down Fed’s economic outlook: ‘Driving in the fog’
Federal Reserve Chairman Chrome Powell said the delay in the release of official economic data is like “fog driving” for those working in the fog. (Jim Watson/AFP/Getty Images)
The Commerce Department’s GDP data from earlier this year showed that the US economy It contracted 0.5% in the first quarter.
The bureau of economic analysis found the economy grew at a rate 3.8% in the second quarterleaving GDP growth in the first half of the year at an annual average of 1.66%.
Combining the Atlanta Feds now shows a 3.9% GDP growth in the third quarter would mean a 2.4% GDP growth in the economy through the first three quarters of 2025.
Find FOX business on the go by clicking here
The New York Fed’s 2.35% growth rate for the third quarter may lead to 1.88% GDP growth for the first three quarters of the year.
