The Labor Department is preparing for what would amount to a news and data blackout should the U.S. government suspend operations.
In a contingency plan released Friday, the department said it was looking “to ensure that DOL agencies can perform an orderly suspension of programs and operations should a lapse occur, while continuing those limited activities authorized to continue during a lapse.”
While the department’s scope covers a multitude of areas, the impact on data releases will be pressing for investors. The DOL, in conjunction with the Bureau of Labor Statistics, has several key reports upcoming that will provide important clues about the direction of the economy and inform Federal Reserve policymakers ahead of their next meeting in October.
“BLS will suspend all operations,” the 73-page plan stated. “Economic data that are scheduled to be released during the lapse will not be released.”
Among the important upcoming reports that could be impacted: On Friday, the BLS will release the monthly nonfarm payrolls report at a time when job growth has been weakening substantially. The department also releases the initial jobless claims report each Thursday.
Then, on Oct. 15, it is scheduled to release the consumer price index, a key inflation indicator and in fact the last such reading the Fed will get before it convenes Oct. 28-29.
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