Yesterday, the Federal Reserve announced that it was cutting interest rates again, by a quarter of a point.

But big whoop, everybody knew that was coming. What people are really dying to know is what the Fed will do next.

Interest rate policy isn't just about what the Fed does at the meeting.

They cut interest rates or they raise interest rates.

That's our chief economics correspondent, Nick Timoros.

It's about what they say is the most likely path forward.

Markets price that in.

The bond market reacts to that. Financial conditions

change because of what they expect the Fed to do. Nick, it seems like every time we have you on the

show, you come up with a very useful metaphor for what is going on at the Fed. So what is the

metaphor that you have for us today? Well, so the metaphor I would use is the one that Jay Powell, the Fed Chair, used yesterday.

They are driving in the fog right now because of this data blackout that resulted from the government shutdown.

You could imagine that, you know, what do you do if you're driving in the fog?

You slow down.

So that could or could not.

I don't know how that's going to play into things.

For the Federal Reserve, the government shutdown has made the road ahead really hard to see.

For the last month, they have not had access to the high-quality economic statistics they use to calibrate their policy decisions.

It's like driving in the fog with a GPS that has no signal.

Driving in the fog, your GPS is out, your speedometer is not working.

The gas light is on, maybe. Well, and you're always sort is not working. The gas light is on, maybe?

Well, and you're always sort of not sure if the readings are right, if the visibility is what you think it is.

...