Trump aims to appoint his loyal personnel at the Bureau of Labor Statistics following the commissioner's dismissal, as stated by Hassett.
In a move that has alarmed economists and federal employees, President Trump has recently removed Erika McEntarfer, the Commissioner of the Bureau of Labor Statistics (BLS), following the release of a weaker-than-expected jobs report. The president accused McEntarfer, without evidence, of manipulating jobs data to make him look bad [1][2].
The underlying reason given was that the jobs report numbers were "rigged" for political purposes against the president, although no proof has been presented. Such accusations challenge the credibility of the BLS, which economists and investors have long regarded as a globally trusted, nonpartisan agency producing unbiased economic data [1][2].
The decision has been widely criticized by economists and former officials. William Beach, Trump’s own former BLS commissioner, described the firing as "baseless" and "damaging." Other federal employees and statistical experts voiced profound concern that the dismissal represents political interference that undermines the agency’s neutrality and threatens the integrity of federal statistics [2][3]. Many fear this act will silence truthful reporting and erode the foundation of democratic governance [2][3].
The firing is viewed as unprecedented given that McEntarfer was serving a fixed term and reflects frustration with the substance of the jobs data rather than policy causes of the weak jobs numbers [3][4].
In other economic news, the tariffs announced last week include new rates on many trading partners, with some of the highest duties imposed on Brazil (50%), Myanmar (40%), and Switzerland (39%) [5]. The prices of some American goods have increased in recent months due to the tariffs, with toys, furniture, apparel, and footwear becoming increasingly expensive [6].
Meanwhile, the US economy added just 73,000 jobs in July, with the monthly totals for May and June also being revised down by a combined 258,000 jobs [7]. The jobs report suggests the economy could "tip over to a recession," and "the risk is greater" than before [8].
Despite the ongoing trade tensions, the US still relies heavily on China for consumer electronics, rare-earth minerals, pharmaceuticals, clothing, shoes, and soybeans and sorghum exports [9]. The United States does not yet have a deal with China after the two sides agreed to a 90-day truce in May [10].
In response to the criticism, National Economic Council Director Kevin Hassett defended Trump's decision to fire McEntarfer, claiming the president "wants his own people there" [11]. Hassett also mentioned that the Trump administration fell short of its promise to secure 90 deals in 90 days [11].
It is yet to be seen who the president will nominate as the new commissioner for the BLS. The nominee would need to be confirmed by the Senate [12].
References:
- CNN
- The New York Times
- The Washington Post
- Bloomberg
- CNBC
- The Wall Street Journal
- The Associated Press
- Reuters
- The White House
- The New York Times
- The Washington Post
- The Hill
- The removal of Erika McEntarfer, the Commissioner of the Bureau of Labor Statistics (BLS), by President Trump has raised concerns among economists and federal employees, as the president accused her of manipulating jobs data for political purposes without evidence.
- Such allegations question the credibility of the BLS, an agency long revered for its nonpartisan, unbiased economic data.
- Many doubt this decision will silence truthful reporting and erode the foundation of democratic governance.
- The US stocks were unexpectedly volatile today, potentially influenced by the ongoing trade tensions, new tariffs, and the common suspicion of manipulation in the stock market.
- The policy of heavy tariffs on major trading partners, such as Brazil, Myanmar, and Switzerland, has led to increased prices for certain American goods, sparking debates about the economic impact of such policies and the role of politics in business and finance.
