CPI Comes in Hot Amidst Scandal of Data Leaked to Liberal Banks!

But were some banks informed early? That is very possible considering the scandal reported below:

The Deeply Liberal Financial Institutions of BlackRock and JPMorgan Deemed “Super Users” Appear to Have Been Granted Leaked Information on Inflation Related Data from BLS:

As we previously reported, the Bureau of Labor and Statistics (BLS) manipulates inflation data through subjective methods known as hedonics and substitution.  The BLS is highly flexible in the extent to which it can stretch to modify numbers, so without insight to their changes, precisely predicting inflation is difficult.  

As reported by Zerohedge and originally received via a New York Times Freedom of Information Act request (FOIA), “Super Users” appear to have been given information on a number of adjustments that would help in predicting CPI and related reports. To the extent that certain financial firms gained advanced knowledge of changes to inflation calculations, if material, would provide extraordinary financial value to large financial institutions.  The advanced information would help them place positions and manage risks ahead of CPI and other BLS reports.

One example of an email posted by Zerohedge:
 

Super Users,

Good Afternoon.

The weights for single family detached homes increased materially from December 2023 to January 2024.  All of you searching for the source of the divergence have found it.

No additional information related to this questions will be disseminated. We do not do diagnostic analysis of microdata.

Blackrock, JPMorgan, led by environmentalist Jamie Dimon. Brevan Howard, Millennium Capital Partners LLP, Citadel, Moore Capital Management, High Frequency Economics, Nomura Securities International, BNP Paribas, Pharo Management and Wolfe Research all appear to have gained information from the Super User emails.

Every one of the listed firms would have ample legal and compliance that should have understood they illegally received advanced non-public information, and yet there are no reports yet of these firms reporting this back to BLS or to financial regulators.
 
The Bureau of Labor and Statistics has not apologized on X or on their website.  Zerohedge reported only that Emily Liddel, associate commissioner for publications and special studies at the BLS said “Obviously this has been an embarrassment for the agency . . . The public puts a lot of trust in us to be fair, and our data providers put a lot of trust in us for the data to be secure. It’s our goal to repair that trust.”

Her patronizing use of “obviously” reflects disrespect to the taxpayers, salt in a deepening wound by a corrupt agency. The Commissioner, Erika McEntarfer should resign as this extraordinary failure happened under her failed watch.

Please feel free to email the Commissioner and comment as to whether and how this leaking scandal has affected your confidence in BLS generally and whether you believe it appropriate that she resign. 

Her email is:  McEntarfer.Erika@bls.gov