WEBVTT - The Economic Data Lost in a Government Shutdown

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The government shutdown started at midnight on Wednesday, but it'll

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<v Speaker 2>take a while to feel its full impact. Grebory Cordy

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<v Speaker 2>covers the White House for Bloomberg, and he says, shutting

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<v Speaker 2>down the US government is a process.

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<v Speaker 3>Actually coming into work on Wednesday morning, there's more traffic

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<v Speaker 3>in DC than there's been in a long time in

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<v Speaker 3>this sort of post COVID world that we're in, because

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<v Speaker 3>federal workers who have been working from home have to

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<v Speaker 3>come in to shut down the government, lock away their files,

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<v Speaker 3>put their out of office on meet with their boss

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<v Speaker 3>one last time, make sure everything's set before they can

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<v Speaker 3>go back home and be furloughed.

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<v Speaker 2>And it's at that point, Gregory says, when you and

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<v Speaker 2>I will start to feel the effects of a government

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<v Speaker 2>shut down in earnest. You'll call a government office with

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<v Speaker 2>a question and no one will pick up. Some scientific

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<v Speaker 2>research will stop, and agencies that collect and disseminate data

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<v Speaker 2>will stop doing that vital work.

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<v Speaker 3>I will give you one example of a very specific

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<v Speaker 3>way that this could impact seventy million Americans, and that

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<v Speaker 3>is that the October Consumer Price Index number is essential

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<v Speaker 3>for the social security Administration to compute the cost of

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<v Speaker 3>living adjustments for retirees who depend on social ob security benefits.

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<v Speaker 3>Social karement Administration has not said how they're going to

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<v Speaker 3>do that. If they're missing a month's worth of data,

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<v Speaker 3>will they just use eleven months? Will they delay it?

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<v Speaker 3>That just a routine use of government data that happens.

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<v Speaker 3>People don't think about it. But all of these mechanisms

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<v Speaker 3>are built on government data, and if you don't have

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<v Speaker 3>the government data, then you can't adjust for inflation.

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<v Speaker 2>Policymakers at the Federal Reserve also rely on those inflation

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<v Speaker 2>numbers and on data about the labor market. The latest

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<v Speaker 2>monthly jobs numbers were scheduled to be released on Friday,

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<v Speaker 2>but because of the government shutdown, they won't be Molly

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<v Speaker 2>Smith is an economics editor at Bloomberg, and she says

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<v Speaker 2>this is likely to make the Fed's next rate decision

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<v Speaker 2>at the end of October all the more complicated.

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<v Speaker 1>Remember, the Fed just lowered interest rates for the first

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<v Speaker 1>time this year. They've been thinking okay, Inflation has been

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<v Speaker 1>running still well above target, but the last jobs reports

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<v Speaker 1>seem to suggest that the labor market is starting to

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<v Speaker 1>really falter a bit, and that We've got to do something.

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<v Speaker 1>And that's what all of this has been hinging on about.

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<v Speaker 1>Expectations for another two cuts this year, expectations for any

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<v Speaker 1>next year. It's really all about the labor market and

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<v Speaker 1>that so depends then on what the government's data says.

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<v Speaker 2>I'm David Gera and this is the big take from

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<v Speaker 2>Bloomberg News Today on the show. A government shutdown impacts

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<v Speaker 2>the economy and economic data. What that means for policymakers, investors,

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<v Speaker 2>and everyday Americans who depend on it. The last government

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<v Speaker 2>shutdown started in December of twenty eighteen, lasted for thirty

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<v Speaker 2>five days. Donald Trump was the president, and there's been

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<v Speaker 2>a string of them, more than a dozen shutdowns since

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<v Speaker 2>Ronald Reagan was in the White House. But when I

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<v Speaker 2>sat down with Bloomberg's Gregory Cordy and Molly Smith, Gregory

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<v Speaker 2>told me this one is unique.

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<v Speaker 3>It feels different for a number of reasons. One is,

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<v Speaker 3>we've seen more political poorization. We have Congress as closely

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<v Speaker 3>divided as it's ever been in its history, just in

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<v Speaker 3>terms of the division between Republicans and Democrats. But it's

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<v Speaker 3>also different because this is a Trump shutdown in his

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<v Speaker 3>second term, where President Trump has decided to do things

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<v Speaker 3>a little bit differently, and so this shutdown, he has

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<v Speaker 3>threatened to not just furlough federal workers, but look for

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<v Speaker 3>ways to fire them. In the first hours of the shutdown,

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<v Speaker 3>the Department Transportation used as an excuse to freeze eighteen

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<v Speaker 3>billion dollars worth of infrastructure funding for New York City

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<v Speaker 3>on the pretext that, well, you know, we don't have

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<v Speaker 3>the Department of Transportation contracting officials that can release this money.

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<v Speaker 3>So there may be a number of things where these

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<v Speaker 3>were things the government did that the Trumpet administration didn't

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<v Speaker 3>particularly enjoy doing in the first place, and the shutdown

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<v Speaker 3>gives them a very convenient excuse not to do that.

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<v Speaker 3>In the meantime, the things that they want to do,

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<v Speaker 3>they have found ways to do them. And so one

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<v Speaker 3>of the things that we found looking through these shutdown

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<v Speaker 3>plans is it looks like fewer federal employees will be

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<v Speaker 3>furloughed because they've gotten creative in finding other sources of

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<v Speaker 3>funding and finding sort of new legal interpretations to say,

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<v Speaker 3>even though the law says Congress has said we can't

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<v Speaker 3>spend money if it hasn't been appropriated by Congress. These

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<v Speaker 3>are essential functions. They've they've broadened that definition to allow

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<v Speaker 3>more federal workers to show up to work even though

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<v Speaker 3>they won't get paid until the shutdown ends.

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<v Speaker 2>Molly, it's at moments like this one when I think

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<v Speaker 2>a lot of Americans become acquainted with or reacquainted with

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<v Speaker 2>all that the federal government does and how it interfaces

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<v Speaker 2>with with their lives. Economic data is a part of that.

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<v Speaker 2>We think about what the Labor Department does or the

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<v Speaker 2>Congress Department, but really all of these agencies are producing

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<v Speaker 2>data that's important. Could you just describe some the impact

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<v Speaker 2>of government shutdown has on their ability to collect and

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<v Speaker 2>disseminate that data.

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<v Speaker 1>So this totally ceases operations across these federal agencies, and

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<v Speaker 1>we've seen that in the most recent contingency plans that

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<v Speaker 1>the Department's released going into this shutdown. So for the

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<v Speaker 1>Buerau of Labor Statistics, which is housed within the Labor Department,

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<v Speaker 1>this is the one where we would get the employment

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<v Speaker 1>report from every month, where we would get the main

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<v Speaker 1>consumer price index, that's the key inflation gage that we

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<v Speaker 1>look to every month. These reports will not be coming

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<v Speaker 1>out on time as scheduled. All of these data releases

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<v Speaker 1>are going to be delayed, including the upcoming jobs report

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<v Speaker 1>that was supposed to be scheduled for this Friday. So

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<v Speaker 1>it really just casts an even bigger cloud over the

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<v Speaker 1>state of the economy right now because federal data is

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<v Speaker 1>really regarded as the gold standard for how to gauge

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<v Speaker 1>what's happening in the economy.

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<v Speaker 2>Could you just sort of help us understand how these

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<v Speaker 2>economic data are used across the economy broadly.

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<v Speaker 1>Yeah, So the big one, obviously for people who listened

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<v Speaker 1>to Bloombergy, is going to be whatever the Federal Reserve

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<v Speaker 1>has to say. So everyone's really wondering, then if this

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<v Speaker 1>shutdown does last into those latter stages that we have

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<v Speaker 1>a Federal Reserve meeting at the end of this month,

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<v Speaker 1>will they have the latest jobs report by then? Will

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<v Speaker 1>they have the latest CPI by then? Will they have

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<v Speaker 1>everything else that the BLS puts out that the agencies

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<v Speaker 1>within the Commerce Department, like the Census Bureau and the

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<v Speaker 1>Bureau of Economic Analysis puts out We just don't know yet,

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<v Speaker 1>but it affects every day Americans too.

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<v Speaker 2>You know.

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<v Speaker 1>Economic data is maybe it's not something that regular people

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<v Speaker 1>are using day to day, but in certain industries and

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<v Speaker 1>business planning, and really all levels of government, in all

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<v Speaker 1>levels of decision and investment making. This is so crucial.

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<v Speaker 1>A lot of people who work in construction or urban

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<v Speaker 1>planning would want to know what kind of estimates there

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<v Speaker 1>are if you were trying to do some kind of

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<v Speaker 1>new residential or commercial construction project, for example, and you

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<v Speaker 1>want to gauge what the local demographics are like to see, well,

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<v Speaker 1>if we're going to be building an apartment complex, who

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<v Speaker 1>lives in this area, what kind of wages do they make,

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<v Speaker 1>what kind of commute do they do to work. This

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<v Speaker 1>is all things that federal data point us to.

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<v Speaker 2>Gregre I know you've been sifting through contingency plans that

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<v Speaker 2>we've seen from omb the way that the federal government

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<v Speaker 2>is thinking about how the shutdown might unfold. When you

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<v Speaker 2>look at pass shutdowns, what can we learn, what can

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<v Speaker 2>we ascertain from how they approached the release of data,

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<v Speaker 2>the collection of data, this particular facet of what the

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<v Speaker 2>federal government does.

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<v Speaker 3>Well. One thing that's different this time is this is

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<v Speaker 3>the first shutdown that we've had since the Obama shutdown

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<v Speaker 3>of ten fifteen years ago that has happened at the

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<v Speaker 3>beginning of a fiscal year, and so we all know

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<v Speaker 3>the data comes out of the first of the month.

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<v Speaker 3>The last time we had a long shutdown, it was

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<v Speaker 3>over the holidays. It was kind of sleepy. That was

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<v Speaker 3>pre COVID. I don't think the FED was watching the

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<v Speaker 3>jobs numbers quite as closely as they are this time around,

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<v Speaker 3>and so frankly, a lot of federal data didn't come

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<v Speaker 3>out in previous shutdowns, and people didn't miss it quite

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<v Speaker 3>as much. It's as much about this economic moment that

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<v Speaker 3>we're in as it is about the shutdown. But also

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<v Speaker 3>remember there's a backdrop here where President Trump had fired

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<v Speaker 3>the commissioner of the Bureau of Labor Statistics, has not

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<v Speaker 3>been happy with the data that he's getting out of

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<v Speaker 3>the Labor Department anyway, and so a shutdown means we

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<v Speaker 3>don't get the data. But it also means for President

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<v Speaker 3>Trump that there's no chance of bad news coming out

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<v Speaker 3>of his administration on the labor market, at least as

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<v Speaker 3>long as there's a shutdown. And of course that will

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<v Speaker 3>catch up eventually, and those jobs numbers that we get,

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<v Speaker 3>when we do get them, will include a good number

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<v Speaker 3>of maybe seven hundred and fifty thousand federal employees who

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<v Speaker 3>will be unemployed during that stretch, not to mention maybe

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<v Speaker 3>another one hundred and fifty or more federal employees who

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<v Speaker 3>took the deferred resignation program that expired at the beginning

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<v Speaker 3>of this physical year. As of Wednesday, those are now

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<v Speaker 3>the federal payroll, and so there are going to be

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<v Speaker 3>a number of shocks to the next jobs report when

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<v Speaker 3>we get.

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<v Speaker 2>It coming up. What it'll mean for the Federal Reserves,

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<v Speaker 2>specifically not having new data on the US economy and

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<v Speaker 2>what policymakers, economists, and investors will rely on instead of

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<v Speaker 2>those government reports. The Federal Reserve's rate Setting Committee is

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<v Speaker 2>scheduled to meet next on October twenty eighth and twenty ninth,

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<v Speaker 2>and that'll happen whether or not the government is open.

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<v Speaker 2>In September, FED Chair Jerome Powell signaled he and his

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<v Speaker 2>colleagues are open to another rate cut this year, but

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<v Speaker 2>that will depend on the latest data, especially data on

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<v Speaker 2>the jobs market.

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<v Speaker 1>We're in a meeting by meeting situation.

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<v Speaker 2>We're going to be looking at the data. The FED

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<v Speaker 2>has been dealing with policy uncertainty whether it should cut

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<v Speaker 2>rates and if so, by how much, But it's also

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<v Speaker 2>been facing personnel uncertainty. On Wednesday, the Supreme Court, which

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<v Speaker 2>also stays open during government shut down, said President Trump

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<v Speaker 2>can't fire FED Governor Lisa Cook immediately. The court will

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<v Speaker 2>hold oral arguments in January. I asked Bloomberg's Molly Smith

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<v Speaker 2>about how the FED is handling all of this uncertainty.

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<v Speaker 1>It's a really feisty time at the FED right now,

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<v Speaker 1>which is I feel like, not a word we use

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<v Speaker 1>a lot to describe the FED. You know, it's usually

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<v Speaker 1>the FED as well as some of these other agencies

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<v Speaker 1>that I've named, tend to be you know, they function

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<v Speaker 1>best when you don't really hear about them. But there's

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<v Speaker 1>just been so much changeover at the FED recently, obviously

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<v Speaker 1>with Lisa Cook's position. We had a different FED governor

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<v Speaker 1>resign recently and that opened up a spot for Stephen

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<v Speaker 1>Myron to come into. So that was one of Trump's

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<v Speaker 1>top economic advisors who recently just joined the FED. Of course,

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<v Speaker 1>we have Chair J. Powell's term ending next year. There

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<v Speaker 1>are all these moving parts right now that I think

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<v Speaker 1>this maybe adds a little bit of stability the time

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<v Speaker 1>when there hasn't been a lot of stability at the FED.

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<v Speaker 1>So I'm sure, there's going to be so much more

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<v Speaker 1>on this to come that I don't think we've heard

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<v Speaker 1>the last of what's happening with Lisa Cook yet.

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<v Speaker 2>When FED policymakers gather in Washington at the end of

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<v Speaker 2>the month, they're going to review all the economic data

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<v Speaker 2>they have, and I asked Molly what they'll rely on

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<v Speaker 2>if they don't have a new jobs report or a

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<v Speaker 2>new CPI report.

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<v Speaker 1>So there are a lot of other companies that they

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<v Speaker 1>basically will look at their own metrics of their payroll

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<v Speaker 1>providers like ADP is one of them. Revellio will scrape

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<v Speaker 1>through job profiles online LinkedIn and indeed do similar metrics

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<v Speaker 1>using their own job platforms. This is basically what we're

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<v Speaker 1>left with. We just saw a metric from ADP about

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<v Speaker 1>their employment gauge in the month, which a lot of

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<v Speaker 1>economists typically don't like to look to already because it

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<v Speaker 1>doesn't closely align with what the BLS puts out. And

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<v Speaker 1>then on top of that, they had some issues adjusting

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<v Speaker 1>the data this time around, so that made it even

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<v Speaker 1>more difficult to interpret. But there are some other sources

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<v Speaker 1>that compile announcements on layoffs, so I would say it's

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<v Speaker 1>most expansive on the labor market side. There are a

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<v Speaker 1>few on the inflation side too. We do get some

0:12:04.480 --> 0:12:07.480
<v Speaker 1>others on consumer spending. Probably the best of what we

0:12:07.520 --> 0:12:10.000
<v Speaker 1>see is on the housing side. The National Association of

0:12:10.040 --> 0:12:14.320
<v Speaker 1>Realtors is usually the go to source for sales of

0:12:14.400 --> 0:12:17.920
<v Speaker 1>existing homes in the US, and that's based on contract closings,

0:12:17.960 --> 0:12:21.360
<v Speaker 1>and they also do a leading indicator based on contract signings.

0:12:21.520 --> 0:12:24.240
<v Speaker 1>So we still do get a decent amount of housing data,

0:12:24.280 --> 0:12:27.840
<v Speaker 1>granted not on the new homes or residential construction side.

0:12:27.880 --> 0:12:30.079
<v Speaker 1>That all comes from Census. And we do have all

0:12:30.080 --> 0:12:33.240
<v Speaker 1>these private sector sources, but a lot of them rely

0:12:33.360 --> 0:12:35.600
<v Speaker 1>on what the government has to say. They don't operate

0:12:35.640 --> 0:12:39.400
<v Speaker 1>totally independently of what the beer of Labor Statistics has

0:12:39.440 --> 0:12:42.240
<v Speaker 1>to say. So, needless to say, there are still holes.

0:12:42.320 --> 0:12:44.080
<v Speaker 1>They're just not going to add up to be the

0:12:44.080 --> 0:12:45.679
<v Speaker 1>full picture we'd have otherwise.

0:12:46.320 --> 0:12:49.640
<v Speaker 2>How did you read the numbers from ADP this morning

0:12:49.720 --> 0:12:51.760
<v Speaker 2>a miss compared to what the media and estimate was

0:12:52.120 --> 0:12:54.839
<v Speaker 2>saw revision from the last period as well. What does

0:12:54.880 --> 0:12:56.440
<v Speaker 2>that tell you bearing in mind what you just said,

0:12:56.440 --> 0:12:57.920
<v Speaker 2>which is it's not going to give you the same

0:12:58.080 --> 0:12:59.640
<v Speaker 2>picture that the Labor Department data would.

0:12:59.840 --> 0:13:03.800
<v Speaker 1>It was a particularly challenging ADP report to dissect because

0:13:03.840 --> 0:13:08.000
<v Speaker 1>they also then used a separate measure from the BLS

0:13:08.040 --> 0:13:12.400
<v Speaker 1>to readjust their data, so that resulted in the payrolls

0:13:12.640 --> 0:13:15.120
<v Speaker 1>dropping as much as they did. They fell thirty two

0:13:15.160 --> 0:13:18.680
<v Speaker 1>thousand in the month of September just for reference. Economists

0:13:18.720 --> 0:13:22.040
<v Speaker 1>that Bloomberg had surveyed had put in immediate estimate of

0:13:22.080 --> 0:13:24.600
<v Speaker 1>a gain of fifty one thousand, So it was a

0:13:24.600 --> 0:13:28.040
<v Speaker 1>bit challenging to get through to see what this meant

0:13:28.040 --> 0:13:31.000
<v Speaker 1>with the data methodology. Some economists even said they couldn't

0:13:31.040 --> 0:13:33.360
<v Speaker 1>totally make sense of it, and it just made it

0:13:33.440 --> 0:13:36.199
<v Speaker 1>even more difficult to rely on what ADP has to say.

0:13:36.559 --> 0:13:38.599
<v Speaker 1>Granted if you just take a step back, though, I

0:13:38.640 --> 0:13:41.400
<v Speaker 1>don't think this changes the overlying trend that we're seeing

0:13:41.440 --> 0:13:44.200
<v Speaker 1>in the labor market, that it is weakening, that we

0:13:44.280 --> 0:13:47.839
<v Speaker 1>are seeing pay gains soften, we are seeing hiring slowed down,

0:13:48.200 --> 0:13:50.800
<v Speaker 1>there's less demand for workers. I think right now the

0:13:50.880 --> 0:13:53.400
<v Speaker 1>question is just the speed of which that's happening.

0:13:53.440 --> 0:13:57.440
<v Speaker 2>At Gregory, I'm curious sort of how policymakers in Washington

0:13:57.480 --> 0:14:00.440
<v Speaker 2>are reacting or not reacting to this shutdown. I don't

0:14:00.440 --> 0:14:02.280
<v Speaker 2>think that we've gotten a statement from the Federal Serve,

0:14:02.320 --> 0:14:04.360
<v Speaker 2>for instance, or from any of these agencies that goes

0:14:04.400 --> 0:14:07.760
<v Speaker 2>beyond just the kind of contingency plans they're putting in place.

0:14:08.200 --> 0:14:11.280
<v Speaker 2>But what's the reaction, ben broadly is, as you've watched

0:14:11.280 --> 0:14:14.760
<v Speaker 2>this unfold over the last twelve hours or so, you know.

0:14:14.760 --> 0:14:18.000
<v Speaker 3>The thing about shutdowns is, I think we've just kind

0:14:18.000 --> 0:14:21.080
<v Speaker 3>of got inured to them somewhat. This is the case

0:14:21.080 --> 0:14:24.680
<v Speaker 3>where we have Congress unified control by Republicans, we have

0:14:24.760 --> 0:14:29.160
<v Speaker 3>Republican president, but Republicans don't have that supermajority in the

0:14:29.200 --> 0:14:33.400
<v Speaker 3>Senate that allow them to get past a possible Democratic filibuster.

0:14:34.560 --> 0:14:39.440
<v Speaker 3>It's a symptom of our polarization, but also some very

0:14:39.440 --> 0:14:43.880
<v Speaker 3>strong personalities here with Chuck Schumer and Hakeem Jeffries and

0:14:44.280 --> 0:14:47.200
<v Speaker 3>President Trump. We need to stop these premiums from going

0:14:47.280 --> 0:14:50.280
<v Speaker 3>up dramatically. We need to do it now. We're in

0:14:50.280 --> 0:14:54.240
<v Speaker 3>the midst of an incredible crisis, a healthcare crisis that

0:14:54.320 --> 0:14:55.600
<v Speaker 3>Republicans have caused.

0:14:56.720 --> 0:15:01.280
<v Speaker 1>Could be because the Democrats are they don't know what

0:15:01.280 --> 0:15:01.800
<v Speaker 1>they're doing.

0:15:02.240 --> 0:15:06.120
<v Speaker 3>They are dug in and it's very difficult to see

0:15:06.160 --> 0:15:07.720
<v Speaker 3>where the off ramp is.

0:15:07.960 --> 0:15:11.640
<v Speaker 2>This is a game of chicken, Molly, to borrow phrase

0:15:11.680 --> 0:15:15.400
<v Speaker 2>from Gregory here, inured? Is Wall Street likewise inured when

0:15:15.400 --> 0:15:17.880
<v Speaker 2>it comes to these shutdowns, or are we seeing markets

0:15:17.920 --> 0:15:20.880
<v Speaker 2>react to prospect of this unfolding differently the prospect of

0:15:20.880 --> 0:15:24.000
<v Speaker 2>they're being perhaps massive layoffs that unfold during the course

0:15:24.000 --> 0:15:24.600
<v Speaker 2>of the shutdown.

0:15:25.000 --> 0:15:27.400
<v Speaker 1>I was going to piggyback on that point anyway, because

0:15:27.400 --> 0:15:30.120
<v Speaker 1>this is just like something we're all just like, oh, okay,

0:15:30.120 --> 0:15:32.720
<v Speaker 1>here we go again. But as far as the market reaction,

0:15:33.240 --> 0:15:35.400
<v Speaker 1>I haven't really seen much of one, I think, And

0:15:35.440 --> 0:15:38.280
<v Speaker 1>that kind of also speaks to the fact that like, yeah,

0:15:38.320 --> 0:15:41.320
<v Speaker 1>we know the drill, we've seen how this shakes out,

0:15:41.400 --> 0:15:43.360
<v Speaker 1>but we don't know how long this is going to go,

0:15:43.960 --> 0:15:47.120
<v Speaker 1>what other services are going to be affected by this,

0:15:47.240 --> 0:15:49.080
<v Speaker 1>how much data is going to go buy that we

0:15:49.120 --> 0:15:51.960
<v Speaker 1>won't see. So I think it's still a little early

0:15:52.040 --> 0:15:53.880
<v Speaker 1>just to gauge how Wall Street's feeling about it.

0:15:54.240 --> 0:15:57.160
<v Speaker 2>We've talked awful lot about economic data, and Molly, let

0:15:57.160 --> 0:15:59.200
<v Speaker 2>me ask you lastly just about the economy, and you've

0:15:59.200 --> 0:16:01.520
<v Speaker 2>mentioned how the labor market is showing signs of cracking.

0:16:01.560 --> 0:16:04.880
<v Speaker 2>Their issues with it. As Gregory brought up, there is

0:16:04.920 --> 0:16:06.920
<v Speaker 2>the very real prospect here that we won't just see

0:16:06.920 --> 0:16:09.120
<v Speaker 2>furlough as we're going to see layoffs as a result

0:16:09.160 --> 0:16:12.520
<v Speaker 2>of this shutdown. What does that mean for the economy

0:16:12.520 --> 0:16:14.560
<v Speaker 2>as you kind of forecast out and think about the

0:16:14.560 --> 0:16:17.160
<v Speaker 2>impact that could have on as you've described it, very

0:16:17.160 --> 0:16:18.360
<v Speaker 2>fragile US economy.

0:16:18.720 --> 0:16:20.880
<v Speaker 1>I mean, Gregory raised a great point too, that we

0:16:20.880 --> 0:16:25.040
<v Speaker 1>were already expecting to see federal government employment fall in

0:16:25.080 --> 0:16:28.240
<v Speaker 1>the next jobs report because of what he had said

0:16:28.240 --> 0:16:30.920
<v Speaker 1>with the deferred resignations offer, is that if you had

0:16:30.960 --> 0:16:33.400
<v Speaker 1>accepted one of those, September was the last month you

0:16:33.400 --> 0:16:36.360
<v Speaker 1>would be on payroll. So the October jobs report will

0:16:36.400 --> 0:16:39.520
<v Speaker 1>show the impact of that. So just if we have

0:16:39.600 --> 0:16:43.080
<v Speaker 1>that many more layoffs as a result of this shutdown,

0:16:43.160 --> 0:16:46.440
<v Speaker 1>it's just going to exacerbate that. Whether that ripples out

0:16:46.480 --> 0:16:49.840
<v Speaker 1>to the broader economy, though, still really remains to be seen.

0:16:50.120 --> 0:16:53.760
<v Speaker 3>Keep in mind also that contractors, federal contractors could be effected,

0:16:53.760 --> 0:16:56.080
<v Speaker 3>as we're seeing in the New York City example, where

0:16:56.120 --> 0:17:00.520
<v Speaker 3>the Department Transportations frozen money for the second Ave Subway

0:17:00.720 --> 0:17:04.240
<v Speaker 3>and the Hudson Tunnel project. And so that's eighteen billion

0:17:04.280 --> 0:17:07.159
<v Speaker 3>dollars worth of construction that at the very least is

0:17:07.160 --> 0:17:10.080
<v Speaker 3>going to be delayed. And you know, when you are

0:17:10.119 --> 0:17:13.200
<v Speaker 3>a contractor, you very often live job to job and

0:17:13.280 --> 0:17:17.240
<v Speaker 3>paycheck to paycheck. So if the Trump administration extends this

0:17:17.440 --> 0:17:20.240
<v Speaker 3>shutdown to say, hey, look, you know we don't have

0:17:20.359 --> 0:17:25.640
<v Speaker 3>the contracting officers that can provide for infrastructure projects in

0:17:25.800 --> 0:17:28.640
<v Speaker 3>key places across the country, there could be a little

0:17:28.640 --> 0:17:29.960
<v Speaker 3>bit of a domino effect there as well.

0:17:31.920 --> 0:17:34.359
<v Speaker 2>This is the Big Take from Bloomberg News. I'm David Gurra.

0:17:34.720 --> 0:17:37.240
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0:17:37.280 --> 0:17:40.720
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0:17:40.760 --> 0:17:44.600
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0:17:44.720 --> 0:17:46.840
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0:17:49.880 --> 0:17:51.800
<v Speaker 2>Thanks for listening. We'll be back tomorrow.