As the Fed approaches a crucial decision about whether to raise interest rates, a new government shutdown is threatening.
While the probability of a shutdown might be approaching 50%, this risk is not the primary one for the Fed. On the margin, however, it adds to the case for the Fed again to err on the side of caution.
"Thus, the Fed is expected to keep rates unchanged at next week's FOMC meeting. However, the decision will probably be a close call and a 25 bp rate hike is still a possibility", says Nordea bank.


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