Recent accusations by Donald Trump regarding falsification of U.S. Bureau of Labor Statistics (BLS) data have led to shifts in investor approaches on Wall Street.
Trump and Accusations of Data Falsification
Donald Trump accused the Bureau of Labor Statistics (BLS) of falsifying July’s data without evidence and fired its head Erika McEntarfer. These actions quickly undermined investor confidence in BLS data.
Private Data Becoming Central
Investors are increasingly turning to private companies' data over official BLS reports. Michael O’Rourke from Jonestrading mentioned he would rely more on ADP Research reports and other private sources. Brian Jacobsen from Annex Wealth Management noted private data serves as a check on public information.
BLS Issues and Trust Consequences
The BLS has faced problems due to budget cuts, staffing reductions, and outdated data collection methods. Julian Emanuel from Evercore ISI highlighted the growing attention towards private sources amid uncertainties over government data. Donald Ellenberger emphasized that trust is foundational in finance and losing it can have lasting impacts.
Shifts in the perception of BLS data reflect growing distrust in government reports and the potential for change in information sources within financial markets.
