Federal Reserve Faces Policy Decisions Without Critical October Economic Data Due to Government Shutdown

The United States government announced Friday its decision to cancel the publication of the October consumer inflation report due to data collection challenges caused by the record-length government shutdown.

This cancellation creates significant uncertainty for the Federal Reserve as it prepares for its upcoming interest rate decision meeting, especially since the full October jobs market report has also been canceled because of the shutdown.

In making rate adjustment decisions, the Federal Reserve carefully weighs risks to both inflation and labor market conditions.

Without these crucial economic reports, policymakers will face the December 9-10 meeting lacking the most recent government data on these two critical economic indicators.

The extensive 43-day government shutdown spanning from October into mid-November has already resulted in delays of various economic publications, including retail sales and trade indicators.

Despite the shutdown now being resolved, the Bureau of Labor Statistics (BLS) stated Friday that it "is unable to retroactively collect" the October consumer inflation data.

Consequently, the October consumer price index report, originally scheduled for November 13, will not be published at all.

Earlier this week, the BLS also announced the cancellation of the October jobs report, explaining that survey data concerning the unemployment rate could not be gathered during the shutdown period.

Whatever October employment data is available will instead be combined with November's figures, which will be released after the Federal Reserve's meeting has concluded.

A significant deterioration in the job market could prompt the Federal Reserve to implement further rate cuts to stimulate the nation's economy.

However, President Trump's tariff policies implemented this year have complicated inflation management, leading some Federal Reserve officials to consider maintaining current interest rates for a longer period.