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US-China trade war
USDiplomacy

US government shutdown stops flow of key economic data, latest impact of Trump’s tariffs

Fed Governor Lisa Cook warns lack of government data has challenged the US central bank’s ability to assess current economic climate

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US Federal Reserve Governor Lisa Cook speaks during an event at the Brookings Institution in Washington. She warned that the US federal government’s shutdown has challenged the US central bank’s decision-making process. Photo: AP
Frank Tangin Washington
The prolonged US federal government shutdown has been affecting the release of key data that policymakers need to assess the trade war’s effects and gauge price and labour market trends, further complicating ongoing rate decision disputes between US President Donald Trump and the Federal Reserve.
Speaking at the Brookings Institution on Monday, US Federal Reserve Governor Lisa Cook joined other colleagues to warn how the lack of government data has challenged their decision-making at the US central bank, as they now have to use figures from the private sector, outreach to businesses and even anecdotal data to assess the current economic climate.

In addition to problems caused by data shortages, Cook is also locked in a legal battle with the Trump administration over her position.

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“It is a challenging time to give an outlook speech,” Cook said, pointing out that many data points that she regularly uses to assess the economy – from employment data to price indices – are now on hold.

“The longer the shutdown lasts, the more data could be disrupted.”

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Currently, Fed officials are using a wide variety of data from administrative sources to continually evaluate the state of the economy in real time, including state-level data and various private sector providers.

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