Donald Trump has dismissed Bureau of Labor Statistics Commissioner Erika McEntarfer, accusing her of manipulation of employment data. This decision comes in the wake of disappointing job statistics.
Trump's Dismissal of McEntarfer and Allegations
Trump fired Erika McEntarfer, claiming she was distorting employment numbers for political agendas. This announcement followed the release of a new jobs report where he expressed dissatisfaction about data manipulation. Trump stated on Truth Social, "We need accurate Jobs Numbers."
Weak Job Growth Observed
The Bureau of Labor Statistics reported that only 73,000 jobs were added in July, significantly lower than analysts’ forecasts. Additionally, the data for May and June was revised downward by over 200,000 jobs. Trump also accused McEntarfer of sabotaging election efforts by distorting job growth numbers.
Market Reaction and Consequences
McEntarfer's dismissal and the weak job numbers led to a significant drop in the stock market, with investors losing $1.11 trillion. Trump further targeted Federal Reserve Chair Jerome Powell, referring to him as “Too Late Powell” and calling for more aggressive interest rate cuts. Powell has cautioned against premature action, warning it could negatively impact the labor market.
The dismissal of Erika McEntarfer and Trump's harsh allegations against the Bureau of Labor Statistics highlight the tension between political leaders and the agencies responsible for economic data, affecting the country’s financial stability.
