Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, released information on day 30 of the Trump-Republican shutdown— which Trump and Republicans initiated because of their refusal to negotiate with Democrats to protect health care for millions of Americans. Today’s release highlights how the ongoing shutdown has created a data blackout that has left the Federal Reserve (Fed), investors, and the American public unaware of the true state of jobs, wages, inflation, and the overall economy.

How the Data Blackout is Impairing the Fed’s Decision-Making Ability

Economic data is what helps the Federal Reserve make informed decisions to keep the economy steady, including by setting interest rates, fighting inflation, and protecting jobs. But because of the Trump-Republican shutdown, the government offices that collect and release this information, including the Bureau of Labor Statistics, have been forced to close, leaving the Fed uninformed at a critical moment. Already, policymakers missed last month’s employment report, and the October release will also be delayed. Additionally, the Fed’s preferred measure of inflation is on hold, and the government’s most complete update on economic growth, the Gross Domestic Product (GDP) report, was never released.

Now, the Fed is being forced to make big decisions about interest rates and jobs without the information it needs to guide those choices. If this continues, here’s what that means:

• Missing Jobs Reports: The Fed will have difficulty gauging how many people are getting hired or losing jobs.
  
• No Inflation Data: The report that tracks prices on everyday goods like food, gas, and rent has been delayed. While the White House recalled workers to produce the September inflation report, this is not expected to be the case for future data, which will leave the Fed guessing about whether prices are rising or falling.
  
• No Growth Report: The government’s main update on how much the economy has grown, called the GDP report, was delayed, which makes it harder for the Fed to tell if the economy is speeding up or slowing down.
  
• Trade Data on Hold: The Fed also doesn’t have a complete picture of how Trump’s tariffs are affecting the cost of goods for businesses and families.
  

With the lack of data on multiple fronts, the Fed will face increasing challenges in determining if future interest rate cuts are justified, and by what degree, to promote full employment and combat inflation.

What this Means for Families and Workers

Let’s be clear, when the Fed doesn’t have access to reliable data to make informed decisions, it’s everyday Americans who end up paying the price. Businesses rely on gold-standard government data to set wages and make crucial business decisions that impact working-class families. This data blackout threatens to drive up prices that were already skyrocketing thanks to Trump’s reckless economic policies and trade war, which means families could soon see everyday essentials climb even higher, with no relief in sight.

The impact doesn’t stop there. With the job market showing signs of decline and with reports of massive layoffs at companies like Amazon, Target, UPS, and Microsoft, the loss of timely jobs data makes it harder to gauge the unemployment rate and see where opportunities are shrinking or which communities are being hit the hardest—all of which makes it nearly impossible for the Fed to respond appropriately to fulfill its mandates and promote a strong economy.

Long-Term Consequences

Make no mistake, the damage from this shutdown won’t end when the government reopens. Every day it continues, families face higher costs, workers face growing job insecurity, and our economy is weakening. By cutting off the data that keeps our financial system stable, Donald Trump and Republicans have put politics before people. Their chaos is undermining trust, delaying progress, and threatening the economic security that every hardworking American deserves.

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