Federal Reserve officials: Government shutdown leads to data shortages, which is a "problem" for the Federal Reserve
Chicago Federal Reserve President Goolsbee stated that the U.S. government shutdown has led to a lack of official economic data, which complicates the Federal Reserve's decision-making, especially due to the absence of inflation data. He warned that the government shutdown will cause the Federal Reserve to lose important economic indicators during a critical period, affecting the upcoming employment report and consumer price index. The Federal Reserve's next interest rate decision meeting is scheduled for October 28-29, and policymakers will face the challenge of assessing the economy with incomplete data
Chicago Federal Reserve President Goolsbee stated that the lack of official economic data during the U.S. government shutdown will make it more difficult for central bank policymakers to interpret the economic situation, which is a problem for the Federal Reserve.
In an interview with a U.S. public media program on Wednesday, Goolsbee warned that the government shutdown would cause the Federal Reserve to lose important economic indicators during a critical period. He is particularly concerned about the absence of inflation data, noting that while there are many non-government data sources for the labor market, the situation is not the same for inflation statistics. He stated:
"If we don't have this data, it will be troublesome."
The U.S. government began its shutdown on Wednesday, and the government agencies responsible for collecting and publishing economic data will cease related work. The first important data that may be affected is the U.S. Bureau of Labor Statistics employment report scheduled for release on October 3. The monthly Consumer Price Index report originally scheduled for release by the U.S. Bureau of Labor Statistics on October 15 may be affected, which is a key report on inflation. The Census Bureau's reports on retail sales and new residential construction also face the risk of being delayed.
Goolsbee reiterated concerns about the recent rebound in service sector inflation, stating that this may indicate that price pressures persist in the part of the economy least affected by tariffs. The Federal Reserve's next interest rate decision meeting is scheduled for October 28-29. At this critical juncture, policymakers will face the challenge of assessing the economic direction in the absence of complete data.
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