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Analysts predict economic growth slowed in the July-September quarter to an annual rate of 2 percent or less. Many had thought that growth would accelerate in the final three months of the year to a rate above 2.5 percent. But with each day the government stays shuttered, growth is likely to weaken a little more. The shutdown has also delayed key economic reports, including the September employment report that was due last week. Without those reports, the Fed will have trouble getting a read on whether the economy and job market have made progress since it last met. That's another reason economists expect the Fed will wait until next year to slow its stimulus. The Labor Department did report last week that unemployment benefits are still hovering near six-year lows. And average U.S. rates on fixed mortgages have fallen for three straight weeks to their lowest level in three months, in part because the Fed opted to continue buying bonds at its current pace.
[Associated
Press;
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