The White House announced that key reports on inflation and labor may not come out due to the government shutdown. Press secretary Karoline Leavitt expressed concerns that this could damage the federal statistical system. She noted that important economic data might be lost, leaving policymakers at the Federal Reserve in the dark when they need it most.
Economists had already feared that the Consumer Price Index (CPI) data for October might not be released, as federal workers weren’t on the job after October 1. The White House later clarified that the September jobs report would still be published once the shutdown ends, but October’s report is uncertain.
The last report available before the shutdown was from August, released on September 5. This left economists and market watchers bracing for incomplete data once the shutdown concludes. Opinions vary on how this lack of data may affect the Fed’s decision-making. Some economists believe the Fed can rely on private data, such as the recent ADP report, which stated that 42,000 jobs were added in October. However, earlier reports from the Bureau of Labor Statistics showed a less stable labor market.
Fed Chair Jerome Powell mentioned that the absence of government data is only a temporary situation. He explained that while it might not impact the December meeting, decision-makers may need to be cautious: “If you’re driving in the fog, you slow down.”
The situation underscores how critical accurate data is for economic policy. A survey from the National Association for Business Economics indicates that 68% of economists worry about the implications of missing federal data, which may lead to misinformed policy decisions.
As we navigate these uncertain times, the importance of having reliable data can’t be overstated. For more information on the impact of government shutdowns on economic reporting, you can check sources like the Bureau of Labor Statistics and National Association for Business Economics.
