Despite accusations of data manipulation, Trump fired Bureau of Labor Statistics Chief Erika McEntarfer, prompting widespread reactions in the economic community.
Firing of the Chief Employment Strategist
Trump announced the firing of Erika McEntarfer via social media, coinciding with the release of the Bureau of Labor Statistics report showing a sharp decline in job numbers. The report indicated that only 73,000 new jobs were created in July, with previous months' data revised down by nearly 260,000, marking the lowest three-month average since the pandemic.
Official Responses to Trump's Accusations
Vice President JD Vance and Labor Secretary Lori Chavez-DeRemer dismissed Trump's allegations regarding the manipulation of the report. Chavez-DeRemer stated on Bloomberg TV that while the data was revised downward, 'job growth is still on the right path,' adding that 'nearly half a million jobs have been added' during Trump's time in the White House, a claim not supported by data.
Reactions to the Firing and Market Consequences
The reaction to the firing was mixed. Former BLS chief William Beach described the termination as 'unjustified' and warned it sets a dangerous precedent. Additionally, stock indices saw significant drops: the Dow Jones fell over 500 points, and the Nasdaq dropped by more than 2%.
The situation surrounding the firing of Erika McEntarfer raised questions about the independence of statistical data in the U.S. and triggered sharp reactions in both political and economic circles.
