In a surprising decision, President Trump fired the Bureau of Labor Statistics chief amid concerns over weak job data linked to escalating tariffs.
US President Donald Trump has abruptly fired the head of the Bureau of Labor Statistics (BLS), Erika McEntarfer, over a dismal jobs report that he claimed was manipulated. He took to social media to assert, without substantiation, that McEntarfer presented “wrong” numbers for political gain. This move not only stunned Wall Street but also triggered concerns over the integrity of economic statistics, as the country grapples with ongoing tariff disputes.
Stock markets reacted negatively, with the S&P 500 falling by 1.6% and global markets experiencing significant declines. Analysts are worried that Trump's tariffs—ranging between 10% to 50% on various goods—will adversely affect the economy, especially after the BLS revealed only 73,000 jobs were added in July, significantly lower than expected. Additionally, the BLS revised previous months’ job figures, showing 250,000 fewer jobs than initially reported.
Despite this backlash, Trump is adamant about his tariff strategy, claiming it will revitalize U.S. manufacturing. Interestingly, the decision to dismiss the top statistics chief comes just as businesses note the negative impact of tariffs. Economists emphasize the necessity of unbiased and accurate data for economic planning, criticizing the administration's move as a potential threat to the nation's statistical credibility.
McEntarfer, confirmed by the Senate in 2023, has served in government for over two decades. Her firing raises questions about the administration’s approach to economic data collection, especially as the U.S. government curtails it. Critics warn that undermining this integrity could have long-reaching consequences for the economy.
As the stock market continues to react to these developments, Trump has additionally targeted Federal Reserve Chairman Jerome Powell, urging quicker action on interest rates. The cumulative effect of these decisions could redefine the financial landscape just as fears of an economic slowdown loom larger.
