Fed Loses Access to Private Employment Data as U.S. Government Shutdown Limits Economic Visibility

Key TakeawaysThe ongoing U.S. government shutdown has disrupted access to official economic data for Federal Reserve officials.The Fed has also lost access to private-sector employment data from a third-party provider, compounding the information gap.The data blackout could hinder the Fed’s near-term policy assessment ahead of the upcoming FOMC meeting.Fed Faces Data Gaps as Shutdown Drags OnAccording to Jinshi Data, the U.S. government shutdown has not only limited access to official economic statistics but also cut off the Federal Reserve’s access to third-party employment data used to supplement official reports.This disruption complicates the Fed’s ability to evaluate labor market conditions, a key input for monetary policy decisions. Analysts warn that limited visibility into employment trends could delay policy adjustments or increase uncertainty ahead of the next rate meeting.Policy Implications Ahead of FOMCEconomists noted that the loss of timely data could make the Fed more cautious in its upcoming communications and decisions. Without access to full labor and inflation indicators, risk management considerations may dominate policymaking until data flows resume.