Analysts said they did not expect the US Federal Reserve to make any changes to its monetary policies in the near future. According to a Reuters report, officials of the US central bank would still wait for the effects of the government shutdown on the US economy to happen before making any policy shifts. The Federal Reserve would most likely continue with its bond-buying policy until next year, the report added.
Florida-based Raymond James Chief Economist Scott Brown told Reuters the policy would probably remain until January or March next year. He said, "Odds for December are less than 50/50."
Economic data accumulated by Reuters revealed that US growth had been weak. Before the 16-day partial government shutdown, the data showed a slowdown in job growth and business investment plans. Reuters also reported that the budget impasse could also have lasting impact on the confidence of consumers and businesses. In addition, the upcoming change in the leadership of the Federal Reserve would also prevent officials from making dramatic changes in policy, the report said.
Join the Conversation