According to The Wall Street Journal, the Federal Reserve is likely to continue its current monetary policies in order to offset damage from the government standoff. The paper suggests the Fed foresaw the shutdown, prompting them to hold off on derailing mortgage-backed securities or Treasury purchases.
Two weeks into the shutdown, some of the fallout is clear. Economic growth will be at least a little slower than it would have been otherwise. Businesses and consumers are less confident about the economy's near-term course than they were before the shutdown started. And the most closely watched official gauges of economic activity—the government reports suspended by the shutdown—will be unlikely to provide reliable readings for months.
