Oct. 27 (UPI) -- The Federal Reserve will meet Wednesday, as the U.S. government shutdown enters its fifth week, to decide whether to cut interest rates for a second time since September.
Last week, the Labor Department released its Consumer Price Index, showing inflation rose at a rate of 3% last month. While inflation remains above the Federal Reserve's 2% target, many economists expect a rate cut this week.
"Concerns about tariffs driving prices higher are still not showing up in most categories," Scott Helfstein, Global X's head of investment strategy, told CBS News on Friday. "Nothing in the inflation print should stop the Fed from cutting rates next week. Yes, prices are higher, but not enough to keep them from helping the economy."
Because of the government shutdown, the Federal Reserve will have to make its decision without some key economic data, including the monthly jobs report, gross domestic product, trade data, housing information, retail sales, and manufacturing and inventory statistics.
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