NY Fed President Highlights CPI Distortion After Shutdown

NY Fed President John Williams discusses the November CPI distortion due to a six-week government shutdown impacting data collection.

Fed President Comments on CPI and Shutdown Impact

Key Takeaways:

Technical data issues impacted November’s CPI, said John Williams.
Shutdown distorted CPI, reducing inflation rate by 0.1%.
Shutdown’s impact on traditional data, not on cryptocurrencies.

John Williams, President of the New York Federal Reserve, revealed during a CNBC interview on December 19, 2025, that November’s CPI figure was distorted due to data collection issues.

This distortion suggests caution in interpreting the CPI, influencing assessments of economic health and possible adjustments in fiscal policy, although it did not directly impact cryptocurrency markets.

Fed President Comments on CPI Distortion

John Williams, President of the New York Federal Reserve Bank, said the November CPI was likely understated. This was due to technical reasons following a six-week federal government shutdown, which impacted data collection on rents and prices.

John Williams, President, New York Federal Reserve Bank, stated, “Technical factors distorted November’s CPI reading downward due to a six-week federal government shutdown impacting data collection on rents and other prices.”

Source

The shutdown had a significant impact, skewing the CPI reading downward by approximately 0.1 percentage points. Williams noted this deviation in a CNBC interview, highlighting its effect on measuring inflation.

Immediate Impact on Inflation Measurement

The immediate effect of the distortion was a reported 2.7% annual inflation rate, down from 3% in September. This has implications for assessing economic performance accurately.

Williams’ comment focused on traditional economic data. It did not mention any direct impacts on the cryptocurrency sector or related industries.

Long-term Implications and Historical Context

The CPI distortion, primarily noted by Williams, reflects a unique data collection challenge. No similar events have previously affected the data this way.

Potential financial implications include a reevaluation of economic strategies. Historical trends show how critical accurate data is in informing economic policy and maintaining market stability. For more on recent CPI releases, refer to the Monthly Consumer Price Index News Release by the Bureau of Labor Statistics.