Several major financial institutions corresponded directly with a U.S. government economist about key inflation data, according to a new report, incidents that another government official called an “embarrassment.”
Bloomberg, citing emails obtained through a records request, reports that Wall Street giants including JPMorgan Chase and BlackRock were among those that appeared in email exchanges with the economist at the Bureau of Labor Statistics (BLS). The economist and the financial institutions that he dubbed “super users” discussed details of the consumer price index (CPI), an important inflation metric.
The economist answered numerous questions about the CPI data, Bloomberg reports, a majority of which had to do with calculations in the shelter and used car categories. While this economist usually pointed the financial institutions to relevant links on the BLS website, in at least one instance he provided information that wasn’t yet publicly available regarding computations for the used cars index within the CPI, Bloomberg reports.
BLS, the government agency that compiles and releases economic data, said in a statement late Wednesday that “according to our research to date, the use of the phrase ‘super users’ was isolated to this employee.”
“BLS does not maintain a list of ‘super users,’” the agency said. “We have taken this opportunity to reinforce our customer service standards and training across the Bureau.”
Other financial institutions that exchanged emails with the BLS economist, Bloomberg reports, include Citadel, BNP Paribas, Millennium Capital Partners LLP, Brevan Howard, Moore Capital Management, High Frequency Economics, and Nomura Securities International.
JPMorgan, BlackRock, Citadel, and Brevan Howard declined to comment late Wednesday. BNP Paribas, and Millennium Capital Partners LLP did not immediately respond to requests for comment. Moore Capital Management, High Frequency Economics, and Nomura Securities International could not immediately be reached.
The New York Times reported similar findings in a review of emails that it received from the agency using a Freedom of Information Act request.
Investors closely watch the CPI and other economic data, which can have significant impacts on daily market movements.
Emily Liddel, a BLS associate commissioner for publications and special studies, told Bloomberg that the communications between the economist and Wall Street giants were “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,” she said, adding that the problem seemed to be isolated to the lone economist. “It’s our goal to repair that trust.”
BLS has a general inquiry inbox where anyone — including analysts and journalists — can make inquiries about data. The “super users” list, Liddel told The Times, appears to have been a list personally made by the economist and is not a standard practice for the agency.
The correspondence first came to light after the unnamed economist sent an email to a group of data users in February addressed to “Super Users,” The Times reports. In the email, the economist explained how a small methodological adjustment might have contributed to an unexpected increase in housing costs in the previous month’s CPI. That email spread rapidly in Wall Street circles, given the outsize impact the data could have on the bond market.