U.S. President Donald Trump announced his intention to dismiss the head of the agency responsible for publishing key economic data, following a disappointing jobs report that intensified concerns about his tariff policies.
In a social media post, Trump accused Commissioner Erika McEntarfer, without providing evidence, of manipulating employment figures for political gain.
The decision has reverberated through Wall Street, raising anxieties about potential White House interference with economic data at a time when many economists predict that Trump’s tariffs will negatively impact the economy.
This announcement coincided with global stock markets experiencing turbulence after Trump proceeded with plans to significantly increase tariffs on goods globally.
In the U.S., all three major indexes declined, with the S&P 500 closing 1.6% lower, following earlier sell-offs in European and Asian markets.
Ryan Sweet, chief U.S. economist at Oxford Economics, expressed concern over the decision to terminate the Bureau of Labor Statistics (BLS) commissioner, emphasizing the importance of reliable economic data for businesses, which is difficult to replicate through private sources.
“Clearly, this is a step in a very bad direction,” he stated. “If there are any questions around the integrity of the data … it’s going to create a lot of problems.”
Trump has downplayed concerns regarding his tariff plans, asserting that they will stimulate manufacturing in the U.S. and correct global trade imbalances.
However, recent data and updates from companies regarding tariff costs have made those forecasts increasingly difficult to support.
On Friday, the Bureau of Labor Statistics reported that U.S. employers added only 73,000 jobs in July. The agency also significantly revised job growth estimates for May and June, reporting 250,000 fewer jobs created than previously estimated.
Trump cited these revisions when announcing his decision to dismiss Ms. McEntarfer.
“We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY,” he posted on social media.
The head of the Labor Department, which oversees the BLS, announced via social media that Deputy Commissioner William Wiatrowski would assume the role during the search for a replacement.
The Labor Department did not immediately respond to requests for comment. The BLS routinely revises jobs numbers each month as new data becomes available, typically adding or subtracting tens of thousands of positions.
Although this month’s changes were notably larger than usual, analysts indicated that the updates were consistent with other data suggesting an economic slowdown.
Some analysts speculated that the revisions could reflect a negative impact on small businesses, which tend to be slower in responding to surveys and are particularly susceptible to tariffs.
“Revisions are normal,” Mr. Sweet said. “They’re trying to get this right.”
Ms. McEntarfer had served in government for over 20 years before being nominated to lead the BLS in 2023. Her confirmation by the U.S. Senate was nearly unanimous.
Michael Strain, director of economic policy studies at the American Enterprise Institute, defended Ms. Entarfer, stating that she had always conducted herself with “great integrity.”
“It is imperative that decisionmakers understand that government statistics are unbiased and of the highest quality. By casting doubt on that, the President is damaging the United States,” he wrote on social media.
Jed Kolko, a senior fellow at the Peterson Institute for International Economics, expressed serious alarm regarding the firing. This comes after the government has reduced its collection of economic data, including inflation information, amid government spending cuts.
“For six months, I’ve said that threats to economic data have been more collateral damage than intentional harm. No longer. Firing the head of the BLS is five-alarm intentional harm to the integrity of US economic data and the entire statistical system,” he wrote on social media.
Trump defended his decision, stating that her departure was necessary to ensure that there were “people that we can trust” in these posts.
“Why should anybody trust numbers?” the president told reporters before departing the White House on Friday. “I believe the numbers were phony, just like they were before the election, and there were other times – so you know what I did? I fired her, and you know what I did? The right thing.”
The dispute over the data arises as Trump is reshaping trade policy, imposing new tariffs ranging from 10% to 50% on goods from countries worldwide.
When Trump proposed similar plans in April, U.S. shares plummeted by over 10% within a week, with concerns spreading to the dollar and bond markets.
The stock market recovered after he suspended some of the most drastic measures, leaving in place a less severe, more anticipated 10% levy. In recent weeks, U.S. indexes have been trading near all-time highs.
The latest measures are less extreme than Trump’s initial proposals in April, but they will still raise the average tariff rate to approximately 17%, up from less than 2.5% at the beginning of the year.
“The reality is Trump got emboldened by the fact that markets came right back,” Michael Gayed, a portfolio manager for The Free Markets ETF, told the BBC’s Opening Bell. “Now he’s going to try his luck again.”
U.S. shares opened lower in the morning, with losses accelerating throughout the afternoon. The S&P 500 closed down 1.6%, while the Dow dropped 1.2% and the Nasdaq fell 2.2%.
France’s CAC 40 closed down 2.9%, and Germany’s DAX fell 2.6%. In the U.K., the FTSE fell 0.7%.
Earlier, South Korea’s leading index fell 3.8%, the Hang Seng index in Hong Kong dropped 1%, and Japan’s Nikkei fell 0.6%.
Following the jobs report, Trump also launched another attack on Federal Reserve Chairman Jerome Powell, whom he accuses of being too slow to lower borrowing costs.
Powell leads the 12-person committee that determines the central bank’s interest rate policy, which influences interest rates for loans across the economy.
On Friday, Adriana Kugler, a voting member of that committee whose term was set to expire in January, announced her resignation, presenting Trump with an opportunity to appoint a new member.
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