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6 sats \ 0 replies \ @denlillaapan 17h \ on: Does Government Shutdown Affect the Federal Reserve Ability to Ease Policy? econ
what's your mechanism for why continued shutdown -> not lower rate...?
By traditional macro, shutdown (marginally!) means less gov activity/spending, so lower GDP, pushing Fed more toward a rate cut
More critically: don't think the Fed takes the shutdown into account (it's minor, does almost nothing)