Big Take The Shutdown Will Make the Fed’s Decisions Harder
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Oct 1, 2025 
Gregory Korte, a Bloomberg White House reporter, provides insight into the political dynamics surrounding the US government shutdown. Molly Smith, an economics editor at Bloomberg, discusses how the shutdown disrupts crucial economic data collection, affecting everything from the Consumer Price Index to job reports. They explore the immediate operational impacts on federal workers and implications for future Fed decisions. The conversation also highlights the increased reliance on alternative data sources and the uncertainty looming over policymakers and markets.
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Feds Return To Office To Shut Down
- Gregory Korte described federal workers returning to offices to lock files, set out-of-office messages, and meet bosses before being furloughed.
- That hands-on shutdown process makes the immediate effects visible in day-to-day operations.
Data Gaps Threaten Routine Benefits
- Missing government data can immediately disrupt routine programs like Social Security cost-of-living adjustments.
- Without October CPI, agencies may delay or substitute data, creating uncertainty for beneficiaries and policymakers.
Federal Data Releases Will Be Delayed
- A shutdown halts key releases like the monthly jobs report and CPI from the Bureau of Labor Statistics.
- Those delays widen uncertainty because federal data are the gold standard for gauging the economy.