Powell warns about data degradation as agencies cut surveys; Fed watches measurement quality

Lawmakers from both parties pressed Federal Reserve Chair Jerome Powell about the integrity and future of the public statistical system, citing funding cuts and personnel reductions at agencies such as the Bureau of Labor Statistics and the Office of Financial Research.

Powell told the committee he was not worried about data accuracy “today,” but said he is concerned about the direction of travel: reductions in the scope of surveys, lower response rates and other declines in measurement capacity would make the data more volatile and less reliable over time. He urged continued investment in measurement, saying accurate statistics are critical not only for the Fed but for Congress, businesses and households.

Members also flagged the proposed Interior of budgetary and staffing changes at statistical agencies and asked whether the Fed could compensate with private data sources. Powell said the Fed increasingly uses private‑sector datasets as supplements but that government statistics remain the gold standard and should be preserved and improved.

Several committee members asked for assurance the Fed would alert Congress if measurement capacity deteriorated materially; Powell said he would raise concerns if they arose and emphasized the importance of long‑term investment in data collection and analysis.