- White House blames Democrats for potentially permanently derailing October jobs and CPI reports, leaving Fed “flying blind” during a critical period.
- Shutdown halted BLS operations, creating consecutive months without official data and forcing reliance on imperfect private estimates.
- Economists warn lost data fuels uncertainty, market dips, and conspiracy theories, complicating Fed decisions and public trust in statistics.
Washington, D.C. — In a stunning escalation of the blame game surrounding the longest government shutdown in U.S. history, the White House announced Wednesday that critical economic data from October, including the closely watched jobs report and consumer price index (CPI), may never see the light of day.
Press Secretary Karoline Leavitt didn’t mince words, accusing Democrats of inflicting lasting damage on the nation’s statistical system and leaving Federal Reserve policymakers “flying blind” at a pivotal moment for the economy.
“The Democrats may have permanently damaged the Federal Statistical system, with October CPI and jobs reports likely never being released, and all of that economic data released will be permanently impaired, leaving our policymakers at the Fed flying blind at a critical period,” Leavitt told reporters during a heated briefing at the White House.
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This comes as the shutdown, which stretched over 40 days and finally showed signs of ending, forced the Bureau of Labor Statistics (BLS) to halt operations almost entirely.
Why This Matters More Than You Think
The monthly jobs report isn’t just some dry government spreadsheet. It’s the pulse of the American economy: How many jobs were added?
What’s the unemployment rate? Are wages rising? Investors on Wall Street hang on every digit, and the Fed uses it to decide interest rates that affect everything from your mortgage to your credit card bills.
The October report was originally slated for release last week, marking the second month in a row with no official numbers—the first time that’s happened back-to-back.
Private estimates are filling the void, but they’re no substitute.
Goldman Sachs guessed the U.S. lost about 50,000 jobs in October, while Dow Jones-surveyed economists put it closer to 60,000.
Payroll firm ADP reported a meager 42,000 private-sector additions.
tAnd it’s not just jobs. The CPI, which tracks inflation, is equally doomed, according to the White House.
That means no clear read on whether prices are still stinging families at the grocery store or gas pump.
The Blame Game Heats Up
Leavitt’s comments were a direct shot across the bow at Democrats, who the administration says dragged out the shutdown by demanding $1.5 trillion in new spending, including Medicaid restorations.
The standoff began October 1 over budget fights, with both sides digging in—Republicans pushing for cuts aligned with President Trump’s agenda, Democrats holding firm on social programs.
But this isn’t the first time economic data has become a political football under Trump.
Back in August, the president fired the BLS chief after disappointing numbers, sparking accusations of tampering with the stats.
Critics say the White House is now using the shutdown as cover to bury bad news.
What Economists Are Saying—And Why It’s Scary
Top experts aren’t sugarcoating it. Mohamed El-Erian, chief economic adviser at Allianz, tweeted that skipping these reports is “virtually guaranteed to fuel conspiracy theories.”
He added: “The government shutdown derailed that data collection process. Trying to ‘catch up’ on data collection is not just technically tricky; it may also be relatively inaccurate.”
Some, like Boston College’s Brian Bethune, suggest the Labor Department should prioritize November data instead of chasing ghosts from October.
Fed Chair Jerome Powell has called the blackout a “temporary state of affairs,” but warned it could fog up decisions at the December meeting: “What do you do if you’re driving in the fog? You slow down.”
Former BLS commissioner Erica Groshen echoed the concerns, noting that monthly household surveys like these leave a “hole” if skipped entirely.
Private Data Steps In—… But It’s Not the Same
With no official BLS numbers, everyone’s turning to alternatives. ADP’s payroll data, Challenger job cuts reports—they’re helpful, but limited.
As one economist put it, private sources “can still produce data that functions as a public good,” but they can’t match the government’s comprehensive sweep.
Wall Street’s reacting too: Markets dipped on the news, with crypto like Bitcoin and XRP taking hits amid the uncertainty.
What’s Next? A Foggy Road Ahead for the Economy
As the government gears up to reopen, the September jobs report (data collected pre-shutdown) should drop soon.
But October? It might be a permanent blank spot in the record books—a first in modern history.
This data blackout couldn’t come at a worse time. With the Fed juggling rate cuts and Trump blasting Powell for being “too slow,” clear numbers are crucial.
Conspiracy theories are already brewing, and trust in government stats is hanging by a thread.
Will we ever get the full picture of October’s economy? Or is this the new normal in a divided Washington?
One thing’s clear: Americans deserve better than flying blind.
Also Read: A DOJ Whistleblower Now Makes Revelation That Undermines the Judicial System’s Integrity
