US Shutdown Threat Delays Jobs Data, Lifts Crypto
US Shutdown Threat Delays Jobs Data, Fuels Market Uncertainty
The looming US government shutdown on October 1 is raising the risk of delayed labor market data, adding fresh uncertainty for global markets. In the meantime, gold and cryptocurrencies are gaining traction as safe-haven assets amid doubts over the Federal Reserve’s policy path.
Congressional Standoff Threatens Key Economic Reports
If lawmakers fail to pass a budget, the Bureau of Labor Statistics (BLS) will halt operations, which could postpone the release of Friday’s crucial Nonfarm Payrolls (NFP) report. The data is widely used to gauge the Fed’s next rate moves.
A shutdown would also force furloughs for thousands of federal workers, disrupting multiple government operations. Disagreements between Republicans and Democrats over healthcare spending and tax policy have made compromise elusive, leaving markets bracing for impact.
US Labor Market Weakness And Fed Policy
The American job market has shown signs of cooling, with slower hiring, rising unemployment, and the highest levels of long-term joblessness since the mid-2010s, excluding the pandemic period. Sectors such as manufacturing and professional services have stalled recruitment.
Last month, the Fed responded to deteriorating labor conditions by cutting interest rates. This week’s NFP report was expected to help define the Fed’s future rate path. Forecasts from BRN suggest a modest 75,000 new jobs, near the “breakeven” range of 0–50k that Fed Chair Jerome Powell says is needed to keep unemployment steady.
Without timely data, the Fed may have to make decisions in the dark, intensifying fears it is falling behind the curve.
Safe-Haven Demand Boosts Gold And Crypto
Market uncertainty has pushed investors into gold, while cryptocurrencies are also benefiting as alternative safe-haven assets. Bitcoin and other major tokens have reversed course this week, showing upward momentum.
A BRN analyst noted: “We see strong arguments for additional Fed actions in October and December after September’s rate cut. The economy will likely feel the impact more slowly this time, making urgent action necessary.”
Still, the long-term outlook remains uncertain. Whether crypto can sustain its gains depends largely on the outcome of budget negotiations in Congress and the Fed’s response to weakening labor conditions.
Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.