BLS Will Delay the January Jobs Report Due to Shutdown

• The government shutdown is delaying critical economic data, including the January jobs report and JOLTS data, creating uncertainty.
• BMO Capital Markets maintains a positive US growth forecast (roughly 2.5% for 2025-2026) due to overall economic resilience and manageable inflation.
• Concerns persist regarding trade tariffs, especially with the USMCA deal and potential European tariffs, impacting US companies and states.
• Uncertainty surrounds the Federal Reserve's future policy, particularly with the potential nomination of Kevin Warsh and his stance on reducing the balance sheet while potentially lowering short-end rates.

Jennifer Lee discusses the US economic outlook, highlighting resilience despite the government shutdown delaying key jobs data. She notes ongoing concerns about trade tariffs and the uncertainty surrounding the Federal Reserve's future policy direction under potential new leadership, particularly regarding balance sheet reduction and interest rates.