U.S. Shutdown Leaves Global Policymakers 'Data-Blind,' Obscuring Economic Outlook

Benzinga

The U.S. data blackout from the government shutdown is leaving global policymakers “blind” to key indicators. Japan and the U.K. warned it complicates rate decisions, while the IMF cautioned that political interference risks policy mistakes.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02U.S. government shutdown has halted official data releases, leaving global policymakers in Japan,

00:07the U.K., and data-blind to the world's largest economy, according to Reuters.

00:11Think and Japan, Governor Kazuo Iida said a data freeze complicates decisions on interest

00:16rates hikes, while a Japanese official called it a joke, noting that the Federal Reserve's

00:20data-dependent policy now lacks data. Think and England policymaker Catherine Mann said

00:25U.S. data and federal independence issues are secondary to trade policy for the BOE.

00:30They're warned that gradual policy shifts could weaken the dollar's global standing over time.

00:34The IMF echoed this concern, saying political interference in agencies like the Bureau of Labor Statistics

00:39could raise the likelihood of policy mistakes.

00:42And the Federal Reserve and private data firms continue to provide limited insights.

00:46Economists warn that prolonged disruption could cloud global economic forecasts

00:49and increase market volatility.

00:51For all things money, visit Benzinga.com.

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