US Government Cancels October Inflation Report Amid Shutdown

2025-11-22 economy

Washington, D.C., Friday, 21 November 2025.
The cancellation of October’s CPI report due to the government shutdown leaves the Federal Reserve without essential data, complicating interest rate decisions amid ongoing inflation concerns.

Impact on Federal Reserve and Economic Policy

The decision by the Bureau of Labor Statistics to cancel the release of the October Consumer Price Index (CPI) report due to the prolonged government shutdown has left Federal Reserve policymakers without critical data needed to assess inflation trends. This lack of information complicates the Federal Reserve’s task as it considers whether to adjust interest rates in response to ongoing inflationary pressures [1][2].

Challenges in Monetary Policy Decision-Making

Federal Reserve Chair Jerome Powell has likened the current situation to ‘driving in the fog,’ as the absence of comprehensive economic data hinders the central bank’s ability to make informed decisions. The Fed had been in the process of cautiously reducing interest rates after aggressive hikes in 2022 and 2023. However, without the October CPI data, the path forward remains uncertain, with policymakers expressing divergent views on the appropriate course of action [3][4].

Broader Economic Implications

The cancellation of the October jobs report further exacerbates the uncertainty, as labor market data is a crucial element in the Fed’s analysis for interest rate decisions. The November jobs report has been delayed to December 16, adding to the complexity of the situation. As inflation remains a contentious issue, the absence of timely data could influence the Fed’s decision-making process, potentially leading to either premature or delayed rate adjustments [5][6][7].

Market Reactions and Future Outlook

Market expectations regarding potential rate cuts have fluctuated, with traders estimating a reduced likelihood of a rate cut following the BLS’s announcement. President Donald Trump has been vocal in advocating for further rate reductions to stimulate the economy, though this comes with the risk of exacerbating inflation. The Federal Reserve’s next meeting in December will be critical, as it will need to navigate these challenges without the benefit of a complete economic picture [8][9][10].

Sources

inflation Federal Reserve