Fed will be stuck with old jobs data when it meets in December
With no access to Oct. or Nov. employment data before its meeting, a rate cut is uncertain. Plus, Dems want Pulte investigated; new CFPB head nominated; more.
Key points:
- The Federal Reserve relies on labor market data to help guide its monetary policy decisions. With no new jobs data to weigh, the board may be more cautious.
- Also at the Fed, Gov. Lisa Cook says FHFA Director Bill Pulte "misled the public and DOJ" with his claims of mortgage fraud.
- Democrats have called for an investigation of Pulte, suggesting that his criminal referrals are being used to target political opponents.
- The Consumer Financial Protection Bureau may get a new director, but the agency's days appear to be numbered.
This week in Washington, D.C., the Bureau of Labor Statistics (BLS) has confirmed it will not release the October jobs report that was skipped during the federal government shutdown, leaving the Federal Reserve without key economic data ahead of its final meeting of 2025.
Meanwhile, Fed Governor Lisa Cook continues to forcefully deny mortgage fraud allegations raised by Federal Housing Finance Agency (FHFA) Director Bill Pulte, who some Senate Democrats want investigated, and President Donald Trump has nominated a new leader for the Consumer Financial Protection Bureau (CFPB).
In other D.C. news, the National Association of Home Builders (NAHB) is throwing its support behind a proposal to limit wetland protections.
No October jobs report
A week after the White House suggested that key economic reports delayed by the government shutdown may never come to light, that prediction has come to pass.
The BLS confirmed today that an October jobs report — specifically the Employment Situation report — will not be released, because a portion of the data cannot be gathered retroactively. The agency said it will include what October labor market data it does have in its November report. While the BLS initially planned to publish that November report prior to the Fed's Dec. 9-10 meeting, the release has now been delayed until Dec. 16.
Earlier this year, Fed Chair Jerome Powell identified labor market data as one of the key metrics the central bank uses in making monetary policy decisions — with no new jobs data to weigh during its next meeting, the Fed may be more cautious when considering rate cuts.
Internal drama at the Fed
Fed Governor Lisa Cook reiterated her denial of mortgage fraud allegations in a Nov. 17 letter her attorney sent to U.S. Attorney General Pam Bondi.
FHFA Director Bill Pulte, who initiated the claims, made "baseless" allegations and "misled the public and DOJ," Cook's attorney wrote, adding that the full collection of her loan documents "clearly demonstrates that this does not amount to the type of criminal wrongdoing that Director Pulte and the President state it to be."
Meanwhile, a former Fed governor is in hot water after the U.S. Office of Government Ethics (OGE) found stock trades made in violation of the Fed's ethics rules. Adriana Kugler, who abruptly left the Fed in August, disclosed stock trades that were made on blackout dates shortly before Fed meetings in 2024.
Kugler noted while disclosing those trades that they were made by her husband without her knowledge, "and she affirms that her spouse did not intend to violate any rules or policies," the OGE's report said.
Democrats want Pulte investigated
Elizabeth Warren of Massachusetts, Dick Durbin of Illinois and six other Senate Democrats are calling on the Government Accountability Office to investigate Pulte's process in making criminal referrals.
The allegations Pulte has made about officials like Cook, who was appointed by former President Joe Biden, "appear to have solely targeted prominent Democrats and public officials, including those President Trump has publicly threatened with political and criminal retribution," according to the letter first obtained by Reuters.
If Pulte has deployed FHFA resources to target political opponents, "the public has a right to know," the senators added.
New CFPB leader nominated
Congressional records show that Trump has nominated Stuart Levenbach to serve as director of the CFPB through what many believe will be its final days.
The Trump administration has made clear its intention to shut down the agency, which Office of Management and Budget (OMB) Director Russell Vought estimates will take a few months. Levenbach, an OMB official, is now poised to oversee the CFPB in the meantime, though he must first be confirmed by the Senate.
NAHB backs EPA proposal
The U.S. Environmental Protection Agency (EPA) has proposed a new rule that would redefine "waters of the United States," or WOTUS, under the Clean Water Act. If adopted, the move would limit protections for wetlands and thus "cut red tape and provide predictability, consistency, and clarity" for American businesses, the EPA explained.
The NAHB previously advocated for this move, which it said will ease the permitting process for home builders amid the housing market's inventory crunch.