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Trump Dismisses BLS Commissioner After Weak Jobs Report

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US President Donald Trump has dismissed Erika McEntarfer, the Commissioner of the Bureau of Labor Statistics (BLS), following the release of disappointing employment figures for July. The report indicated a mere 73,000 jobs added, alongside significant downward revisions for previous months that resulted in a reduction of 250,000 jobs from earlier estimates. This unexpected decision raises questions about the integrity of labor data in the United States.

In a social media post on July 7, 2023, Trump accused McEntarfer of politically manipulating employment statistics, stating, “We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY.” The announcement sent shockwaves through financial markets, with the S&P 500 dropping 1.6%, the Dow Jones Industrial Average falling 1.2%, and the Nasdaq plunging 2.2%. European and Asian markets also experienced significant declines in response to the news.

Concerns over the potential politicization of the BLS, an agency traditionally free from political interference, have been voiced by economists and policy experts. Ryan Sweet, Chief US Economist at Oxford Economics, remarked, “This is a step in a very bad direction. If there are questions about the integrity of the data, it’s going to create a lot of problems for businesses and investors.”

McEntarfer, who was unanimously confirmed by the US Senate in 2023 and boasts over two decades of government service, expressed her pride in her role. She referred to her tenure as “the honour of my life” and emphasized the “vital and important” mission of the BLS. The Labour Department announced that William Wiatrowski, the Deputy Commissioner, will serve as acting head while a search for McEntarfer’s successor is underway. The department has not provided further comments on the matter.

Trump’s decision to remove McEntarfer coincided with the release of the BLS report, which showed a significant slowdown in job growth. The average US tariff rate is set to rise to 17%, up from 2.5% earlier in the year, as the administration announced plans to increase tariffs on goods from various countries to between 10% and 50%. This policy shift has reignited fears of a global economic slowdown, with France’s CAC 40 declining 2.9%, Germany’s DAX falling 2.6%, and South Korea’s KOSPI tumbling 3.8%.

Despite the backlash, Trump defended his tariff strategy, asserting it would revive American manufacturing and restore balance in global trade. He stated, “I believe the numbers were phony. So you know what I did? I fired her. And I did the right thing.” Economists across the political spectrum have expressed alarm over the implications of this dismissal. Michael Strain, an economist at the American Enterprise Institute, noted that McEntarfer had demonstrated “great integrity” and warned that Trump’s actions could undermine the credibility of government statistics.

Jed Kolko from the Peterson Institute for International Economics described the firing as “five-alarm intentional harm” to the US statistical system. Analysts highlighted that the BLS regularly revises employment data as new information becomes available, a standard practice that reflects the realities faced by small businesses, particularly those impacted by tariffs.

“This isn’t manipulation,” Sweet clarified. “Revisions are normal. They’re trying to get this right.”

In addition to the firing, Trump has also intensified his criticism of Federal Reserve Chair Jerome Powell, accusing him of being too slow to lower interest rates. The situation escalated further when Fed Governor Adriana Kugler announced her resignation, potentially allowing Trump to influence future rate decisions.

As tensions rise between the White House and the nation’s economic institutions, experts warn of long-lasting ramifications. Kolko stated, “Undermining trusted data sources undermines policy, investment, and confidence. This could reverberate far beyond one jobs report.” The ongoing developments suggest a critical juncture for US economic policy and the reliability of its official statistics.

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