Trump is undermining the accuracy of the CPI and other US economic indices

The tough policy of Donald Trump’s administration to reduce the number of civil servants and the budget of statistical agencies may lead to a sharp decline in the reliability of key indicators of the US economy. About it writes The Economist. The Consumer Price Index (CPI), on which the Fed, politicians and market participants rely, is particularly under threat.

The Bureau of Labor Statistics (BLS) has shut down data collection in three cities since April and will drop 350 producer price indexes, including those for 34 industries, by August. Agencies are operating at 60% of needed capacity; citizen participation in the surveys has dropped to 67%. The share of fictitious or fake prices rose to 30%.

This could distort the real rate of inflation: overstated figures will lead to higher rates, understated figures will lead to cuts in social benefits. At the same time, the draft BLS budget plans to cut another $56 million – minus 8%.

Federal cuts are taking place as part of the DOGE program: more than 61,000 officials are laid off in 2025. The private sector is also suffering – Google, Microsoft, Intel and Amazon are shutting down entire businesses. Cryptocurrencies are also under attack: Sky Mavis, Kraken, Messari and Foundry conducted waves of layoffs.

Experts fear that the statistical “murkiness” will undermine confidence in the US economy. In the conditions of reorientation towards bitcoin, this is especially critical: maintenance of the digital reserve requires live specialists and transparent macrostatistics.