The U.S. federal government fell into a shutdown again at midnight local time on Wednesday, a situation that hasn't occurred in seven years. Financial analysts point out that this shutdown may strengthen market expectations for the Fed to cut interest rates in October, especially if the deadlock lasts for more than a few days.

Faced with the dual pressures of a weak labor market and persistently high inflation, the Fed is finding it increasingly difficult to make decisions. The government shutdown will prevent the timely release of important economic data, including the non-farm payroll report originally scheduled for release on Friday. The absence of this critical data will complicate monetary policy-making.

Analyst Krishna Guha from Evercore ISI stated in his client report that the government shutdown and delays in data releases may make an interest rate cut in October a more clear option. He believes that the potential economic damage from the government shutdown and ongoing concerns about the job market may outweigh inflation worries. Although Federal Reserve officials have been relatively cautious in their recent statements, Guha pointed out that when assessing the state of the labor market, the government shutdown would make it difficult for the Fed to maintain its current interest rate stance, as if 'looking at things through a fog.'

Bank of America’s analysis also supports this view, suggesting that a government shutdown may increase the likelihood of the Fed cutting interest rates. However, it is important to note that the actual impact of the government shutdown on the economy remains to be seen, and the Fed's final decision will depend on a comprehensive consideration of more factors.

The recent government shutdown highlights the deep-seated contradictions within the American political system and reflects the complex interplay between fiscal policy and monetary policy. Against the backdrop of numerous uncertainties facing the global economy, this move by the U.S. government will undoubtedly bring additional volatility to financial markets and poses new challenges for global economic governance.