What is the Federal Reserve's plan for interest rates?

The Federal Reserve is closely monitoring the upcoming economic data, including the September jobs report, to determine its next steps on interest rates. Policymakers remain cautious about elevated inflation and may hold rates steady or push back on market expectations for further cuts.

What could surprise the bond market?

There is a risk that the upcoming government data, such as the September jobs report, could show stronger-than-expected hiring, which could prompt the Fed to hold rates steady or reconsider its rate cut plans.

Home / Business and Economy / Fed Braces for Deluge of Economic Data, Volatility Looms

Fed Braces for Deluge of Economic Data, Volatility Looms

Q: How did the government shutdown impact the bond market?

The lack of government data during the shutdown made it difficult for bond traders to gauge the direction of the US economy. However, private data sources continued to show a weakening job market, which drove the Fed's recent rate cuts.

17 Nov

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Summary

Agencies to release key reports held back since October
Weak job market drove Fed's recent rate cuts
Surprise upside in data could prompt Fed to hold rates

Fed Braces for Deluge of Economic Data, Volatility Looms

As of November 17, 2025, the bond market is bracing for a deluge of economic data that will provide clarity on the Federal Reserve's future interest rate decisions. The end of the recent government shutdown means that agencies will start releasing key reports that were held back since the start of October, including the crucial September employment report due on Thursday.

The lack of government data during the closure made it difficult for traders to gauge the direction of the US economy. However, private data sources continued to underscore the weakening in the job market, which drove the Fed to lower its benchmark rate at the September and October meetings, ending a nine-month pause.

Now, there is a risk that the government's figures may surprise to the upside by showing that businesses have been adding jobs at a stronger-than-expected pace. This could cause policymakers, who remain mindful of elevated inflation, to hold rates steady at the December 10th meeting or push back on the market's expectations for further cuts in 2026.

"As the economic data starts to trickle in, it is possible that the labor market shows more stability," said Priya Misra, a portfolio manager at JPMorgan Investment Management. "Then the market might further take down odds of a December cut and volatility may rise."

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.