White House Warns of Potential October Economic Data "Blackout," Leaving Federal Reserve "Flying Blind"
White House Press Secretary Caroline Levitt warned on the 12th that due to the federal government shutdown, the October Consumer Price Index (CPI) and employment data statistical reports "may never" be released. This would leave the U.S. Federal Reserve "flying blind" in its policy-making decisions.
Levitt stated at a media briefing on the 12th that even if the federal shutdown ends, the October CPI and employment reports might not be released due to "permanently damaged" data collection and processing efforts. Levitt also claimed that Democrats "may have permanently impaired the federal statistical system."
The federal government shutdown began on October 1st after the Senate failed to pass a new temporary funding bill before the end of the previous fiscal year in late September. This was due to disagreements between Congressional Democrats and Republicans over spending, including on healthcare-related benefits, which caused funds for normal government operations to run out.
This week, the shutdown—which set a record of 43 days—ended after both chambers of Congress passed a temporary funding bill set to expire in late January next year. It was signed into law by President Trump on the evening of the 12th. However, given that the two parties still need to negotiate several other annual appropriations not covered by this temporary bill, a shutdown could still recur.
During the federal government shutdown, the Bureau of Labor Statistics, as the official U.S. statistical agency, was largely shuttered, impairing its data collection functions: The September employment report, although largely completed before the shutdown, could only be released after the shutdown ended. The CPI report for the same month was released several days late in October, but its compilation process was described as rushed. Reports indicated that the Bureau of Labor Statistics had to urgently recall several furloughed employees to complete it.
