Data blackout: Government shutdown halts US employment releases; economic indicators on hold
Other economic indicators scheduled for publication this week, including weekly unemployment claims, have also been postponed, depriving policymakers and businesses of crucial information for decision-making, AFP reported.The shutdown has already led to hundreds of thousands of federal employees being sent home without pay across multiple agencies.
The Congressional Budget Office has estimated that about 750,000 employees could be furloughed daily if funding lapses continue.The US labor market has been under close scrutiny in recent months following signs of slowing hiring, which prompted the Federal Reserve to cut interest rates for the first time in 2025.
The absence of updated official data has raised concerns about the Fed’s ability to make fully informed monetary policy decisions.“Without up-to-date data, the Federal Reserve will not have the full picture it needs to make decisions this month about interest rates that will impact every family across the country,” warned Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee.
She called on the Trump administration to release data already collected despite the shutdown.The data freeze adds to uncertainty for markets and policymakers, with analysts cautioning that prolonged delays could affect economic planning and financial stability.
