Inflation data in the analysis of the audit drawing after the launch of the BLS, the 2.1 trillion dollar market is at risk

By Anirban Dream and Carolina Mandl

New York (Reuters) -Inflation data in the United States has a lustful period to increase the audit after President Donald Trump removed the head of the US Labor Statistics Office, a step that can undermine confidence in the market of $ 2.1 trillion for the cabinet debts designed to protect against inflation.

The consumer price index, which will be released on Tuesday, will test investors’ confidence in the safety of American economic data after Trump launched BLS head this month, accusing her of manipulating jobs.

It is not clear who will replace former BLS Commissioner Erika Minarker. However, any signs that lead investors to doubt that the politicized data can exacerbate concerns about collecting consumer price index data.

In this case, investors are likely to demand higher compensation to obtain advice, or protected securities, whose value is linked to the consumer price index, and to raise the cost of financing the federal government itself, analysts said. The high revenue of tips can be aggravated by poor liquidity compared to the largest market for the nominal cabinet.

“This is not just an academic discussion about obtaining the appropriate numbers – these numbers are important for advice,” said Michael Ferrolly, the chief American economist at JPMorgan Chase. “There are real money on the line here.”

“Historically abnormal in BLS data over the past few years since Covid has ignited the BLS accuracy, reliability and confidence,” a White House. The office did not immediately respond to a request for comment.

Trump ordered the removal of Mcentarfer on August 1 after the data showed a surprise in the American labor market last month. The BLS recruitment report revealed meaningful reviews of the work numbers during the previous two months, which raised the investor’s concerns that the Federal Reserve may need to catch up with discounts in interest rates.

BLS is also responsible for the consumer price index report – a major data point for investors and investors to assess inflation dynamics that affect monetary policy decisions.

“This is a problem if you are a policymaker, (and) if you are an investor – tips for changes in the consumer price index are indexed. The Federal Reserve needs to know what inflation is.”

“This position in which the signal may be less credible, which may affect the term installments in the market, but it may also exacerbate your ability to good policy, but also a good policy in a timely manner,” he said.