How reliable is U.S. economic data? It’s a growing risk for investors awaiting the next Fed rate cut.
From Yahoo Finance: 2025-06-08 09:00:00
Investors are questioning the reliability of U.S. economic data as surveys of consumer sentiment conflict with labor market reports. Cutbacks in data collection due to a federal government hiring freeze may impact the accuracy and volatility of certain details in economic reports. The next CPI report is expected to offer insight into inflation levels for May.
Concerns about the accuracy of U.S. economic data have been growing, with doubts raised about the methodologies used to calculate key reports like the monthly nonfarm-payrolls report. Questions about the reliability of the BLS’s collection efforts for CPI and inconsistencies in labor data calculations have investors and economists on edge. The potential for a Fed policy mistake is looming.
Recent downward revisions in monthly economic reports have sparked fears about the accuracy of U.S. economic data. The impact of President Trump’s tariffs on inflation and the labor market adds to the uncertainty. Experts warn that any reduction in data quality and reliability makes the Fed’s job harder in balancing inflation and employment decisions.
Concerns about the accuracy of economic data are not limited to the U.S., with similar issues arising in the U.K. Market participants and policymakers rely on accurate data to make effective decisions. The reliability of economic data is crucial in guiding decisions on monetary and fiscal policies. U.S. stocks closed higher on Friday, with major indices reaching their highest levels in months.