The firing of BLS commissioner Erika McEntarfer comes as US job growth disappoints and markets react negatively to tariff announcements.
Trump Dismisses Labor Statistics Chief Amid Market Turmoil Over Tariffs
Trump Dismisses Labor Statistics Chief Amid Market Turmoil Over Tariffs
President's controversial move raises concerns over integrity of economic data.
Trump announced the dismissal of Erika McEntarfer, head of the Bureau of Labor Statistics (BLS), after reports indicated weaker-than-anticipated job growth, provoking unease over his trade policies. In a post on social media, Trump alleged without evidence that the BLS head had distorted employment statistics for political reasons. This decision has rattled Wall Street and ignited fears regarding interference in crucial economic reporting at a time when many analysts are warning that the rising tariffs could inhibit economic performance.
As global stock markets reacted negatively, the US indices fell sharply, with the S&P 500 dipping 1.6% post-announcement, following downturns in European and Asian markets. Ryan Sweet, chief US economist at Oxford Economics, expressed concern over the decision, stressing the necessity for reliable economic data, which cannot easily be substituted by private firms. "Clearly, this is a step in a very bad direction," he stated. "Undermining the credibility of the data will lead to numerous complications."
Despite the President's claims that tariffs would enhance manufacturing and rectify trade imbalances, recent data relates to a stark reality where companies have begun reporting adverse impacts from the tariffs. The latest employment data showed a mere 73,000 jobs added in July, alongside significant downward revisions to previous months’ estimates, totaling a loss of 250,000 jobs. Trump referenced these revisions while asserting the need for "accurate Jobs Numbers" in his announcement of McEntarfer’s termination.
William Wiatrowski, the BLS's deputy commissioner, has been named interim head as the search for a permanent replacement begins. Questions on the integrity of the data could have lasting ramifications for businesses until a new leader restores trust. Analysts acknowledged that certain revisions in job figures are standard, albeit recent adjustments were larger than normal and possibly indicative of small business vulnerabilities under tariff pressures.
Having served over 20 years in government before her 2023 nomination and near-unanimous Senate confirmation, McEntarfer was respected for her competence. Defending her on social media, Michael Strain from the American Enterprise Institute conveyed the critical need for unbiased government statistics, warning that the President’s actions jeopardize US credibility.
Moreover, Jed Kolko from the Peterson Institute for International Economics labeled the firing as a grievous threat to data integrity, connecting it to broader government cutbacks in economic data collection. In Trump’s defense, he insisted on the necessity of employing individuals whose trustworthiness is unquestionable, dismissing the integrity of previously released figures.
The escalation in tariffs announced by Trump, ranging from 10% to 50% on various goods, continues to weigh heavily on the stock market. Following an earlier sell-off this year provoked by similar announcements, markets did recover briefly. However, reports indicate that the current measures will elevate average tariff rates substantially, thereby amplifying market unease.
As US markets opened lower, the declines accelerated by day-end, with the S&P 500, Dow, and Nasdaq all plummeting, alongside significant falls in international indices. Following the disappointing jobs report, Trump also targeted Federal Reserve Chairman Jerome Powell, vocally criticizing his pace in reducing borrowing costs—an issue now complicated further by the resignation of a key committee member, offering Trump a chance to appoint a new member before upcoming decisions on interest rates.
As global stock markets reacted negatively, the US indices fell sharply, with the S&P 500 dipping 1.6% post-announcement, following downturns in European and Asian markets. Ryan Sweet, chief US economist at Oxford Economics, expressed concern over the decision, stressing the necessity for reliable economic data, which cannot easily be substituted by private firms. "Clearly, this is a step in a very bad direction," he stated. "Undermining the credibility of the data will lead to numerous complications."
Despite the President's claims that tariffs would enhance manufacturing and rectify trade imbalances, recent data relates to a stark reality where companies have begun reporting adverse impacts from the tariffs. The latest employment data showed a mere 73,000 jobs added in July, alongside significant downward revisions to previous months’ estimates, totaling a loss of 250,000 jobs. Trump referenced these revisions while asserting the need for "accurate Jobs Numbers" in his announcement of McEntarfer’s termination.
William Wiatrowski, the BLS's deputy commissioner, has been named interim head as the search for a permanent replacement begins. Questions on the integrity of the data could have lasting ramifications for businesses until a new leader restores trust. Analysts acknowledged that certain revisions in job figures are standard, albeit recent adjustments were larger than normal and possibly indicative of small business vulnerabilities under tariff pressures.
Having served over 20 years in government before her 2023 nomination and near-unanimous Senate confirmation, McEntarfer was respected for her competence. Defending her on social media, Michael Strain from the American Enterprise Institute conveyed the critical need for unbiased government statistics, warning that the President’s actions jeopardize US credibility.
Moreover, Jed Kolko from the Peterson Institute for International Economics labeled the firing as a grievous threat to data integrity, connecting it to broader government cutbacks in economic data collection. In Trump’s defense, he insisted on the necessity of employing individuals whose trustworthiness is unquestionable, dismissing the integrity of previously released figures.
The escalation in tariffs announced by Trump, ranging from 10% to 50% on various goods, continues to weigh heavily on the stock market. Following an earlier sell-off this year provoked by similar announcements, markets did recover briefly. However, reports indicate that the current measures will elevate average tariff rates substantially, thereby amplifying market unease.
As US markets opened lower, the declines accelerated by day-end, with the S&P 500, Dow, and Nasdaq all plummeting, alongside significant falls in international indices. Following the disappointing jobs report, Trump also targeted Federal Reserve Chairman Jerome Powell, vocally criticizing his pace in reducing borrowing costs—an issue now complicated further by the resignation of a key committee member, offering Trump a chance to appoint a new member before upcoming decisions on interest rates.
