Experts analyzed that due to the lack of key economic data due to the previous “shutdown” of the US federal government, etc., the Fed's decision in December was plagued by multiple problems. The core contradiction in the decision to cut interest rates is still a “blindsided decision.” The Federal Reserve is facing a direct conflict between the dual mission of stabilizing prices and achieving full employment. Recent data shows that the labor market showed more obvious signs of cooling. Private sector employment unexpectedly fell by 32,000 in November, the biggest drop in the past two and a half years. This was the last key employment indicator before the Federal Reserve meeting. On the other hand, the inflation target that the Federal Reserve is most concerned about is still significantly above the long-term target of 2%. Decision-making is complicated by the lack of data, which also exacerbates the difficulties. Due to the previous shutdown of the US government, the current meeting of the Federal Reserve lacked official employment and inflation data since September, and had to rely on unofficial data. This is tantamount to blindsided decisions, increasing the risk of misjudgment.

Experts analyzed that due to the lack of key economic data due to the previous “shutdown” of the US federal government, etc., the Fed's decision in December was plagued by multiple problems. The core contradiction in the decision to cut interest rates is still a “blindsided decision.” The Federal Reserve is facing a direct conflict between the dual mission of stabilizing prices and achieving full employment. Recent data shows that the labor market showed more obvious signs of cooling. Private sector employment unexpectedly fell by 32,000 in November, the biggest drop in the past two and a half years. This was the last key employment indicator before the Federal Reserve meeting. On the other hand, the inflation target that the Federal Reserve is most concerned about is still significantly above the long-term target of 2%. Decision-making is complicated by the lack of data, which also exacerbates the difficulties. Due to the previous shutdown of the US government, the current meeting of the Federal Reserve lacked official employment and inflation data since September, and had to rely on unofficial data. This is tantamount to blindsided decisions, increasing the risk of misjudgment.