"Washington Chaos Adds to Fed's Inflation Battle"

The Federal Reserve's plan to raise interest rates to combat inflation may face additional challenges due to the political chaos in Washington. Even before the recent turmoil, investors and economists were skeptical about another rate hike. The economy and labor market are cooling off, and inflation is gradually moving towards the Fed's target. The Fed's next meeting is in late October, just weeks before a possible government shutdown. Rising oil prices, bond yields, and the UAW auto workers strike are already adding to the uncertainty. While a government shutdown would complicate matters, it would not necessarily prevent the Fed from raising rates. The Fed may rely on privately compiled economic reports to guide its decision-making process.