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Powell Says Fed Uses Private Data for Inflation Tracking During Shutdowns

Jerome Powell cautioned that missing economic data from government shutdowns may warrant delaying rate decisions, highlighting risks for the Federal Reserve’s upcoming December meeting.

Summary

Federal Reserve Chair Jerome Powell stated on Oct. 30 that absent official economic data, such as during government shutdowns, could justify holding off on rate adjustments. He warned that a shutdown affecting the December policy meeting would require extra caution from the Federal Open Market Committee. Powell has previously noted using private-sector data, including PriceStats and Adobe analytics, to monitor inflation when official statistics are unavailable, though he stressed these are not substitutes for government sources.

Terms & Concepts
  • PriceStats: A private data service that provides real-time inflation measures by tracking millions of online prices.
  • Adobe data: Economic indicators derived from Adobe’s online sales and transaction analytics, offering insights into consumer spending and price trends.
  • Government statistics: Official economic data collected and published by agencies such as the U.S. Bureau of Labor Statistics, used for policy and economic analysis.