U.S. Senators Elizabeth Warren and Raphael Warnock have reached out to Federal Reserve Chair Jerome Powell, expressing concern over the Trump Administration's recent actions regarding the nation's economic data infrastructure. Warren, a member of the Senate Committee on Banking, Housing, and Urban Affairs, and Warnock, part of the Subcommittee on Economic Policy, highlighted moves they believe threaten the independence of vital economic statistics.
In a letter, they pointed to the disbanding of advisory committees at the Bureau of Labor Statistics and the Bureau of Economic Analysis. These groups, composed of unpaid economists and data experts, have historically assured the quality of data on jobs, wages, inflation, and GDP.
The Senators questioned how the Federal Reserve intends to protect the data's integrity amid reports of dismissed advisers at the Departments of Labor and Commerce. This data is crucial for setting interest rates and fulfilling the Federal Reserve's mandate of achieving maximum employment and stable prices.
They seek clarification from the Federal Reserve on its plans to ensure data integrity, particularly given the impact of dismantling advisory committees. The letter requests information on the Fed's protocols for vetting external data, possible effects on its mandate, and how past data shaped by these groups has been used.
The Senators emphasized the importance of precise economic data, stating, “One thing we all agree on is the importance of accurate and high-quality economic data. Without it, policymakers would lack a necessary tool to improve the economy for American consumers, workers, and businesses."
They requested a response from the Federal Reserve by April 25, 2025.