Trump fires labor data commissioner after claiming jobs report was 'rigged'
It's his latest attack on economic institutions that are intended to operate on a non-partisan basis
It's his latest attack on economic institutions that are intended to operate on a non-partisan basis
It's his latest attack on economic institutions that are intended to operate on a non-partisan basis
President Donald Trump is firing the head of the federal agency in charge of tracking hiring data after claiming, without evidence, that new figures were "rigged" to make him look bad.
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It's his latest attack on economic institutions that are intended to operate on a non-partisan basis. The president also renewed his pressure campaign on the Federal Reserve on Friday after its governing board decided not to cut interest rates earlier this week.
Trump fired Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer — who was appointed by former President Joe Biden — after a newly released report found U.S. employers added a weaker-than-expected 73,000 jobs in July. There were also 258,000 fewer jobs created in May and June than previously reported, according to routine data revisions.
"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," Trump told reporters Friday evening.
The president is facing backlash from lawmakers on both sides of the aisle and former BLS Commissioners, including William Beach, who was previously appointed by Trump to the position. Beach signed onto saying the president "seeks to blame someone for unwelcome economic news."
"This rationale for firing Dr. McEntarfer is without merit and undermines the credibility of federal economic statistics that are a cornerstone of intelligent economic decision-making by businesses, families, and policymakers," the statement continued. "U.S. official statistics are the gold standard globally. When leaders of other nations have politicized economic data, it has destroyed public trust in all official statistics and in government science."
Asked why Americans should trust jobs numbers moving forward, Trump reiterated criticism of McEntarfer and said, "Your question is a very good one. We need people we can trust."
The fallout from the jobs report was felt on Wall Street. The U.S. Stock Market had its worst day on Friday since May after the president announced new tariffs on dozens of trading partners, which are now set to take effect on Thursday after a week-long delay.
Uncertainty surrounding tariffs is one of the reasons why the Federal Reserve decided not to change its benchmark interest rate on Wednesday, despite pressure from the president.
"Higher tariffs have begun to show through more clearly to the prices of some goods, but their overall effects on economic activity and inflation remain to be seen," said Fed Chair Jerome Powell.
On social media Friday, Trump called Powell, whom he appointed during his first term, a "stubborn moron." He urged Powell to resign and called on the central bank's governing board to bypass him to cut borrowing costs if needed.
Trump wrote, "IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL, AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!"
The Fed announced on Friday that one member of its governing board will step down next week, though no reason was immediately given.
The departure gives Trump a chance to choose a new member, who could potentially replace Powell when his term as chair ends next year. Trump said he is "very happy" about the opening.
Despite Trump's frustration over the jobs report, it could potentially fuel his push to cut borrowing costs. The central bank is tasked with taming inflation while protecting the job market. Signs that hiring is slowing down could tip the scales towards an interest rate cut at the Fed's next meeting in September.
