Erosion of Trust in US Economic Data Sparks Market Concerns
A $2 trillion market for inflation-linked securities in the US faces significant risk if trust in the Bureau of Labor Statistics is undermined, especially after political interference concerns following the firing of BLS chief Erika McEntarfer. Investors worry that politicization could distort CPI data, which is crucial for TIPS valuation, potentially destabilizing this market and affecting broader financial stability. The situation is compounded by recent political and economic developments, including tariffs and Federal Reserve rate expectations.