Chicago Fed President Austan Goolsbee commented on the effects of the government shutdown on the economy.
Goolsbee stated that the shutdown would most directly impact federal employees by not receiving their salaries on time. He argued that without the release of economic data, the Fed would be “virtually blind” in its decision-making process. “Even if official unemployment data isn't available,” he said, “we will make decisions based on other indicators we have.”
Goolsbee stated that various indicators indicate the labor market maintains a certain degree of stability, noting that current data indicates the unemployment rate remains stable. However, he emphasized the importance of avoiding hasty interest rate cuts, saying, “We should avoid lowering interest rates too soon.”
Finally, Goolsbee said he hopes the shutdown ends soon and doesn't impact the broader economy.
As of this writing, a 25‑basis‑point cut is widely expected for the Fed's interest‑rate decision on October 29, 2025. US President Donald Trump, however, is calling for a more aggressive cut.
*This is not investment advice.