US may stop publishing data on inflation. And not only that
12:51 PM EDT, September 27, 2023, updated: 9:18 AM EDT, October 5, 2023
The United States is threatened with so-called federal government shutdown. This may mean that the publication of data such as inflation will be temporarily suspended.
One of the American officials, with whom Reuters agency spoke, warns that the publication of key data on the US economy, such as unemployment and inflation reports, may be suspended indefinitely. This will happen if Republicans and Democrats do not reach an agreement before October 1.
The state is threatened with a "government shutdown"
The United States is in trouble. With the beginning of a new month, a new fiscal year is starting in the USA. In order to start it, an agreement on the financial plan is necessary. Without a compromise, there will be something in American politics that is called a government shutdown - a closure of the federal government.
The suspension of report publication will affect all government agencies. It is already known that employment data will not be published, and the inflation-related publication is at risk. This is a problem. The Federal Reserve, investors, entrepreneurs, will be deprived of information, on the basis of which they make key decisions. The situation could be compared to the lack of report publication by GUS or NBP.
The clock is ticking, yet Congress has not been able to pass any new budget laws - emphasizes Reuters. The House of Representatives, dominated by the Republican Party, is trying to enforce drastic spending cuts.
"Deterioration of management"
Moody's Agency warned that a lack of data could be evidence of financial policy instability. This could result in a downgrade of the United States' rating. This is the argument that Fitch Agency reached for in early August. It downgraded the USA's rating from AAA to AA+, arguing this was due to a "decline in management quality."
While hospitals, post office, and pension payouts will continue to function as usual, many other officials will go on leave. And citizens will proverbially kiss the doorknob. Tax offices will most likely not accept declarations, checks will be suspended. Regular Americans will have trouble. Numerous institutions will be shut down on all fronts - from national parks to museums to NASA.
The last government shutdown in the USA occurred at the turn of 2018 and 2019. However, at that time, the institutions responsible for publishing data were operating.
