ICYMI – Morgan Stanley says government shut down will lead to Fed Reserve policy paralysis

<p>Morgan Stanley says that a full government shutdown will halt the flow of economic data, leaving the Federal Open Market Committee (FOMC) in the dark over the economy</p><ul><li>"In monetary policy making, uncertainty tends to lead to policy paralysis," </li><li>"If it's a full government shutdown, then you don't really get any of the government data,"</li><li>

"And so if we're lacking data that the Fed can officially sink its teeth into, then that's going to lead to an inability to make a decision about the path for rates. The lens of the Fed becomes foggy."
</li></ul><p>The comments are from MS' Ellen Zentner in a Bloomberg TV interview.</p><p>
Congress will shut down next weekend a deal is not struck. Hardline Republicans are calling for tighter spending controls, a significant hurdle in reaching an agreement to get the legislation passed. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.