Market perspectives

The recent U.S. government shutdown, while disruptive, is not unprecedented and is likely to have limited near-term economic impact. However, a more prolonged standoff in funding government services could weigh on sentiment and increase uncertainty.

Despite strong economic growth and solid spending, consumer sentiment weakened in September.

The latest 25 basis point cut comes after the longest pause in a Fed-cutting cycle since 1990. The Fed’s recent messaging suggests further easing is likely on the table before the end of the year.