Group 1 - The ADP employment report for May indicates that the growth rate of new jobs in the private sector is nearly stagnant, raising concerns about a weak labor market [1] - The Trump administration is intensifying pressure on the Federal Reserve to initiate a rate-cutting cycle in response to the employment data [1] - Economists warn that the federal agency streamlining reforms promoted by the Trump administration pose a systemic threat to the quality of economic data, potentially undermining the decision-making foundation for policymakers [1] Group 2 - The Bureau of Labor Statistics (BLS) has quietly adjusted the framework for compiling inflation indicators under the agency streamlining reforms led by the Department of Government Efficiency (DOGE) [3] - Since April, the network for collecting baseline Consumer Price Index (CPI) data has significantly contracted, leading to a reduction in the number of merchant visits and product price monitoring categories due to a shortage of field investigators [3] - The internal emails from the Labor Department indicate that these adjustments will continue until staffing levels return to pre-reform levels, although no specific timeline has been provided [3] Group 3 - The expert advisory mechanism between the BLS and the Bureau of Economic Analysis (BEA) has effectively collapsed, as the technical advisory committees of both key departments have been dismantled, weakening the official interpretation of complex economic data [3] - The president of Inflation Insights, Omar Sheikh, highlights that the combined effects of hiring freezes and budget cuts are undermining the credibility of core economic indicators in the U.S. [3] - The adjustments in the CPI compilation methods were evident in April, where the overall inflation year-on-year growth rate fell to 2.3%, the lowest since February 2021, but the reduction in data collection points may weaken the representativeness of the indicators [3] Group 4 - The market widely anticipates a significant rebound in the May CPI, influenced by the new tariff policies effective from May [4] - Sheikh warns that if data distortion continues, the monetary decisions of the Federal Reserve and fiscal legislation in Congress will face greater uncertainty [4] - The effectiveness of policy tools is likely to be significantly reduced if the logic behind key economic indicators becomes variable, ultimately increasing the risk of economic volatility [4]