Lack of data during the shutdown, globally

""The month-to-month data flow in the U.S. gets talked about but never is a decisive factor,""

""contributes to the general skepticism about the governance of the U.S. and the reliability of the U.S....And that is important. It eventually feeds into reserve management and currency decisions and feeds into volatility outlooks for the U.S. that were not there before.""

The U.S. government shutdown has interrupted regular economic data releases and disrupted the normal flow of information relied upon by global actors. Month-to-month U.S. data receive attention from other central banks but typically do not alone determine policy decisions. The shutdown and disruptions at the Bureau of Labor Statistics increase skepticism about U.S. governance and data reliability. That skepticism influences reserve management strategies, currency allocation decisions, and raises perceptions of greater U.S. market volatility. In the absence of reliable official data, decision-makers may turn more to alternative indicators, private analytics, or AI-driven estimates and informal signals.

Read at FlowingData