U.S. Government Reopens After 43Day Shutdown But Key Economic Data May Be Lost Forever

Highlights:

• The U.S. government has reopened after a record 43-day shutdown, but key October inflation and jobs data may be permanently lost, according to the White House.
• Officials warn that missing CPI and employment reports could leave the Federal Reserve without crucial indicators just weeks before its December interest-rate decision.
• Economists still expect a quarter-point rate cut on December 10, which would mark the Fed’s third straight reduction despite the unprecedented data blackout.

Record-breaking shutdown ends

The U.S. federal government reopened after the longest shutdown in its history — lasting 43 days — when President Donald Trump signed a funding bill late Wednesday to restore operations. At the time of writing, work has resumed across many agencies, but the impact of the shutdown is still unfolding.

Economic data blackout raises major concerns

In a briefing, White House Press Secretary Karoline Leavitt warned that crucial October data on inflation (CPI) and jobs “may never be released,” attributing the loss to the shutdown’s disruption. She cautioned that the data gap could leave policymakers and the Federal Reserve “flying blind at a critical period.” Because the shutdown paused data collection by the Bureau of Labor Statistics (BLS) and the Bureau of Economic Analysis (BEA), a number of monthly reports — employment, inflation, GDP — may be permanently impaired.

What this means for markets and policy

With the data pipeline disrupted, economic forecasting and decision-making face real risks. The Fed is scheduled to meet in December and previously relied on consistent monthly reports to guide rate decisions. The absence of key indicators, or their degradation in quality, complicates setting rates and interpreting the economy’s health.

Takeaway for investors and stakeholders

While the government’s reopening is a relief, the legacy of the shutdown lives on in the form of absent data and increased uncertainty. Investors, businesses and policymakers must now navigate a “foggy” economic landscape where vital metrics are incomplete. Going forward, emphasis will shift toward early signals from private data providers, corporate earnings and market indicators as substitutes for missing official figures.

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