“As a result of US President Donald Trump’s policies, key macroeconomic indicators, including consumer price index (CPI), may lose accuracy. The Economist writes about it. Due to the mass reduction of personnel in state agencies, the system of collecting economic data suffers. By August 2025, the United States will stop publishing produce prices in 34 industries. This will complicate an objective understanding of the state of the greatest economy […]”, – WRITE: Businessua.com.ua
As a result of US President Donald Trump’s policies, key macroeconomic indicators, including consumer price index (CPI), may lose accuracy. About This is written by The Economist.
Due to the mass reduction of personnel in state agencies, the system of collecting economic data suffers. By August 2025, the United States will stop publishing produce prices in 34 industries. This will complicate an objective understanding of the state of the world’s largest economy and potentially contribute to the false decision of the Fed.
Productivity The US Labor Bureau (BLS) records changes in the cost of consumer goods and services in 75 cities of the country. This covers transport prices, housing rentals, products and more. CPI is formed on the basis of this data – the main inflation indicator.
In April, due to limited funding, BLS stopped collecting data in Lincoln (Nebraska) and Provoc (Utah), and in July-in Buffalo (New York). By August, it is planned to cancel the publication of manufacturers’ prices of 350 indexes, including ammunition and metal utensils.
CPI collection depends on the participation of citizens in polls. From 2000 to 2019, 93% of respondents were answered, only 67% after the pandemic. In parallel, the funding of related agencies – the Census Bureau and the Bureau of Economic Analysis. Over 20 years, Congress has reduced the budget by 18%.
The Economist estimates that after stopping and dismissing temporary employees, three agencies only work at 60% of the need. Due to staff deficiency, the proportion of conventional or unverified data increases.
BLS is obliged to publish CPI even in the absence of accurate data – then use similar products or information from other regions. In the midst of the pandemic, the proportion of such replacements increased from 8%to 16%, and in April – May 2025 – up to 30%.
Low inflation can reduce social payments for millions of Americans and inflated – stimulates unreasonable rates Fed.
The Trump budget project provides another $ 56 million Reduction of BLS funding (–8%). The Economist believes that this will only make the situation worse.
Efficiency costs According to Layoffs, 61 296 civil servants have been released within the framework of the Layoffs Department of Efficiency of the State Administration (Doge). In total, 171 843 people.
63,823 workers in 150 companies were dismissed in the technicalsector in the six months of 2025. According to Techcrunch:
- Google reduces 25% of the Smart TV team (300 people), while increasing investments in the AI;
- Intel – 15-20% of employees in Foundry responsible for the production of semiconductors;
- Microsoft – more than 6500 dismissals in May (~ 3%), including programmers, managers, lawyers;
- Amazon – 100 people from the device team (Alexa, Echo, Ring, Zoox). From 2022 – ~ 27 000 abbreviations.
Reduction in the world technological sector. Source: Layoffs.
There are also examples in the crypto industry. In 2024, Kraken reduced 15% of the state (~ 400 people). Sky Mavis has released 21% of staff. The Foundry pool reduced the team by 27%and Messari in January 2025 by 15%.
Recall that in April, Trump urged the Fed’s head to release Jerome Powell for a slow reduction in the key rate.
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