As was widely expected, the FOMC reduced the target range of the fed funds rate by 25 bps points to 3.75%-4.00% at the conclusion of its October meeting. The decision comes under odd circumstances. The ongoing government shutdown has deprived the Committee of key data used to inform its view of the economy. The belatedly-released September CPI report showed inflation still stuck around a 3% pace (chart), but the Producer Price Index has not been published, leaving a less complete picture of recent inflation than the FOMC would have ordinarily. Furthermore, while the Committee has grown more concerned about the state ... (full story)