Group 1: Data Quality Crisis - Federal Reserve Chairman Powell expressed concerns about the reliability of economic data, citing budget cuts at the Bureau of Labor Statistics (BLS) that have led to a decline in data collection capabilities [2][3] - The suspension of CPI data collection in multiple cities has resulted in an estimated CPI value for May with a guessing rate of 30%, significantly higher than the normal level of 10% [3] - The structural flaws in data collection hinder the Federal Reserve's ability to accurately assess inflation pressures, with Powell indicating that core PCE inflation for May could be overstated due to estimation biases [4] Group 2: Consequences of Data Bias - The decline in data quality directly impacts the Federal Reserve's decision-making, creating a dilemma in policy formulation regarding interest rates [5] - The perception of a "false prosperity" in the economy is fueled by the weakened data collection capabilities, which may mask underlying economic risks [6] - The labor market shows signs of structural deterioration, with rising unemployment rates and declining labor participation despite seemingly positive non-farm employment data [6] Group 3: Gold Market Dynamics - Short-term demand for gold as a safe-haven asset has increased due to Powell's comments on data reliability and geopolitical uncertainties, with gold prices rising from a two-week low [7] - Long-term trends indicate a potential decline in trust in U.S. dollar assets due to structural flaws in economic governance, benefiting gold's monetary attributes [9] - The ongoing trend of "de-dollarization," exemplified by countries repatriating gold, highlights the shifting dynamics in the global monetary system, with gold gaining importance as a credit vehicle [9]