Washington: The federal government shutdown in the US could lead to the failure of key agencies and government institutions to release data, which could delay the Fed's rate cut decisions.

According to Anadolu Agency, the US federal government shut down as Congress did not approve a temporary budget bill before the start of the new fiscal year. This marks the first government shutdown since 2019. During a shutdown, the federal government loses its spending authority, suspending all non-essential activities. Federal workers in non-essential services are placed on unpaid leave, while essential workers for the US military, intelligence agencies, public hospitals, airports, and prison facilities continue working without pay.

Sant Manukyan, deputy general manager of Trkiye-based IS Investment, informed Anadolu that the US Treasury needs $700 billion in its account to take precautions, though it currently holds more than that. Manukyan noted that the federal government shutdown may not cause 'much of a problem,' referencing a similar situation during former President Donald Trump's first term.

Manukyan further explained that the inability of key institutions to release data due to the shutdown could lead to a postponement of any previously planned rate cut decisions. He mentioned that some data could be compensated by firms like Automatic Data Processing Inc and the Institute for Supply Management.