US Fed warns of economic impact of shutdown

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Added On January 12, 2019

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Chairman of the U.S. Federal Reserve says prolonged government shutdown would clearly impact the economy. Although it's not clear yet because the shutdown has affected economic data monitoring.
 
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Jerome Powell said on Thursday the shutdown stopped some of the data feed that the Fed needed. It made the outlook of the U.S. economy less clear, and complicated policy-making.
 
The Bureau of Economic Analysis (BEA), an office under the U.S. Department of Commerce, has already stopped updating data for weeks due to the shutdown.
 
It monitors the gross domestic products (GDP) of the United States and many other crucial indicators.
 
The United States Census Bureau also stopped further updates.
 
For investors who experienced recent volatility in the financial markets, lack of data also made it harder for them to gauge the performance of the economy.
 
The Fed chair also warned that if an "extended shutdown" took place, the impact on the economy "would show up in the data pretty clearly."
 
The partisan fight has forced a partial government shutdown. It's now over 20 days, and about to become the longest in U.S. history.