TechFlow news, March 27 — According to Jinshi Data, economists have warned that the Trump administration's significant cuts to federal staffing and research funding could undermine the quality and credibility of America's "gold standard" economic statistics. From employment reports to inflation indices, U.S. data can shake Wall Street’s $105 trillion stock and bond markets within milliseconds and serve as the foundation for policies shaping the trajectory of the world’s largest economy.
Ricardo Reis, professor at the London School of Economics and advisor to the Federal Reserve Bank of Richmond, said: "All federal funding cuts, along with some staff reductions driven by the Department of Government Efficiency... are often fatal blows to survey operations that are already under strain." He added, "The survey work behind indicators such as the Consumer Price Index and Gross Domestic Product—I believe all of these surveys could be affected."
