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Analyst: A U.S. government shutdown could make it possible for the Fed to further cut interest rates in December.

On November 11, Peter Cardillo of Spartan Capital Securities stated that gold futures are rising as the anticipated end of the U.S. government shutdown is expected to restore the normal release schedule of government data. This could make it possible for the Fed to further cut interest rates in December. “Once the government reopens, the backlog of macro data that has not been published may indicate that inflation remains stubborn and that labor market conditions are weaker than what the ADP report shows,” he added. “These two factors could prompt the Fed to lower interest rates in December, although they have repeatedly issued cautious rhetoric.” ( Jin10 )

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