Unlock the White House Watch newsletter for free
Your guide to what the 2024 US election means for Washington and the world
Leading academic economists are expressing concerns not only about the potential impact of the Trump administration’s policies on US growth and inflation but also about the quality of America’s economic statistics. According to the latest FT-Chicago Booth poll, over 90 per cent of respondents are either very or somewhat worried about this issue. The disbandment of the Federal Economic Statistics Advisory Committee (Fesac), along with the alteration or removal of thousands of pages of US government data from websites, has raised alarms among economists, scientists, researchers, and rights campaigners, who view it as a possible White House assault on data.
Fesac, which provided advice on compiling inflation, employment, and GDP data for 25 years, is one of the five advisory councils to federal statistical agencies that were terminated by commerce secretary Howard Lutnick on February 28. The decision to dissolve these councils, which played a key role in enhancing data accuracy and effectiveness, has puzzled many, especially given their importance in adapting to new trends and technologies.
Lutnick’s suggestion that government spending could be separated from GDP reports has also caused unease among economists. This proposal, endorsed by Elon Musk, contradicts traditional economic theory and international standards. Since Donald Trump’s return to the White House, various data sets on climate, crime, natural disasters, and diversity have disappeared from federal websites, sparking further concerns about the manipulation of information.
Reliable statistics are essential for effective policymaking, decision-making, and public assessment of government performance. The US has a long history of pioneering economic statistics and maintaining trust in data integrity. Attempts to manipulate official data risk undermining investor confidence and increasing borrowing costs, potentially damaging the country’s financial reputation.
While some data may remain beyond the Trump administration’s control, efforts to limit access to information could have unintended consequences. Private sector entities and tech companies may offer alternative sources of data, but without the credibility associated with government-backed statistics. The extent to which the White House continues to meddle with data may depend on the response from companies and investors.