Economy Fed won’t get key inflation data

Bureau employees were unable to gather the data due to the protracted government shutdown. The Bureau of Labor Statistics said it will not release the October CPI report. The Federal Reserve will meet in December without the new inflation data it typically relies on, as November's inflation report is also delayed.

The Fed is in a difficult situation as a result. In the absence of CPI, policymakers would be forced to make a significant interest rate decision without factoring in one of their most crucial indicators. This suggests the Fed will be cautious and wait for more precise information before making bold decisions or lowering interest rates.

We anticipate that the Fed will make specific decisions that impact markets, jobs, loans, and mortgages. However, given that the nation is unable to provide the fundamental flow of information it depends on, how can it accomplish that? It's similar to expecting a pilot to land an aircraft without instruments and then holding them accountable for a difficult landing.

This should serve as a warning. The system needs significant strengthening if our economic data can collapse so readily. This is true not only for policymakers but also for everyone whose everyday lives depend on steady, well-informed decisions. Until then, there will be more market fluctuations, more uncertainty, and more times when those in charge of the economy must work in the dark.

In summary, the missed CPI announcement serves as a reminder of how vulnerable our data infrastructure can be when politics gets in the way, the Fed operates somewhat in the dark, and markets are on edge.

Link: https://www.cnbc.com/2025/11/21/fed-wont-get-key-inflation-data-before-next-rate-decision-as-bls-cancels-october-cpi-release.html