Overdue Economic Data May Never Be Released: Leavitt

The White House warned Wednesday that key economic data for October that's been delayed, including the monthly jobs report and consumer price index, probably won't be released at all—even after the government shutdown ends. Blaming Democrats, press secretary Karoline Leavitt said the interruption "may have permanently damaged the Federal Statistical system," leaving policymakers at the Federal Reserve without crucial information at a pivotal time. Until now, analysts were anticipating that the report would be published within a few days of the government reopening, NBC News reports.

The prospect of missing or delayed data has left the financial community, including investors and economists, in a state of uncertainty. The last official jobs report before the shutdown covered August and was released on Sept. 5. There is confusion over whether Leavitt was referring to the October jobs report, which was to be released in early November, or the September report, scheduled for Oct. 3. Neither the Bureau of Labor Statistics nor the Department of Labor has clarified the situation. Economists and market participants are bracing for a period of limited visibility once the government resumes operations.

Some believe the Federal Reserve may rely more heavily on private sector data—including a recent ADP report that showed 42,000 jobs added in October—to guide its policy decisions. However, official government reports had painted a weaker picture of the labor market prior to the shutdown, and Politico points out that many experts don't believe the private information is much of a substitute for the comprehensive government data. Federal Reserve Chair Jerome Powell acknowledged the challenge, describing the data gap as a "temporary state of affairs." The Federal Reserve's next meeting is scheduled for the second week in December.