Shutdown? M’eh. UBS says the Federal Reserve will cut in October anyway.

UBS said a potential U.S. government shutdown, which would suspend the release of official jobs, inflation and unemployment data, should not prevent the Federal Reserve from cutting rates again in October.

The bank noted that revisions to labour market figures—closely watched in recent months—would also be delayed, but the Fed would still have access to private-sector reports and its own surveys, including the Beige Book.

UBS said that while the lack of fresh data could complicate the policy debate, it does not expect it to stop the Fed from delivering another 25bp cut at its next meeting.

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The Federal Open Market Committee (FOMC) next meet October 28-29.

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