Moody's: A flurry of US economic data is due to be released; deviations from expectations could cast doubt on the credibility of the Federal Reserve's...

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The US government's reopening allows key economic data release after a shutdown. If data deviates from expectations, it may cause market volatility and doubt the Fed's policy credibility.

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US economyFederal Reservemarket volatilityeconomic data
According to Mars Finance, citing Jinshi Data, after a record-breaking shutdown, the US government has resumed operations, marking the imminent release of key indicators analyzing the health and trajectory of the US economy. "This period was like flying blindly in a fog," lamented Mark Zandi, chief economist at Moody's Analytics. "We completely lost our navigation tools." Zandi stated that private sector data has prepared people for the possible outcomes of official data; however, if the actual data deviates from expectations, the market could experience significant volatility. "If the official data matches expectations, that's great," he said, "but if the released data—whether positive or negative—deviates from our expectations, it could trigger market doubts about the effectiveness of the Federal Reserve's policies during the government shutdown."

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