Trump Fires BLS Chief Amid Revised Jobs Data and Political Backlash

President Donald Trump abruptly removed Erika McEntarfer, the commissioner of the Bureau of Labor Statistics (BLS), hours after the agency released a weak jobs report showing the slowest employment growth since the pandemic [1]. The decision came amid sharp downward revisions to prior payroll data and has raised concerns about the politicization of official economic statistics. Trump accused McEntarfer, a Biden appointee, of providing "RIGGED" numbers designed to undermine his administration and Republican political interests, despite no evidence supporting these claims [2].

The firing has drawn swift criticism from economists across the political spectrum. Michael Strain of the American Enterprise Institute stated there was "just absolutely no evidence" to suggest McEntarfer had any intent to manipulate data [3]. William Beach, a former BLS director under Trump's first term, described the move as "totally groundless" and warned it set a dangerous precedent for the independence of statistical agencies [4]. The BLS is widely recognized for its nonpartisan reputation and for producing data that underpin critical economic policy decisions and market expectations.

Yung-Yu Ma, chief investment strategist at PNC Asset Management Group, noted that Trump's actions could spark market anxiety over whether political considerations will increasingly influence economic data [5]. The timing of the firing—just days after a significant downward revision to previous employment figures—has fueled speculation about the reliability of the data and the potential for future manipulation.

In a related development, Federal Reserve Governor Adriana Kugler announced her resignation on the same day as the BLS firing [6]. Trump expressed satisfaction over the open seat, indicating he would soon appoint a replacement aligned with his economic agenda, including calls for lower interest rates. This has heightened fears among investors and economists that Trump may extend his influence into the central bank, further undermining its independence.

The political implications of these events have already been reflected in financial markets. Two-year Treasury yields dropped sharply following the news, reflecting expectations of future rate cuts. However, the S&P 500 remained under pressure as concerns about data credibility and policy uncertainty grew [7]. Trump has continued to criticize Federal Reserve Chair Jerome Powell, who has maintained a cautious stance on rate cuts despite weak economic data. The president has urged board members to defy Powell and push for lower rates, raising the possibility of further institutional clashes.

With McEntarfer replaced on an acting basis by William Wiatrowski, the immediate future of the BLS remains uncertain. The broader implications of Trump’s actions, however, extend beyond the Labor Bureau. The administration’s aggressive posture toward economic institutions challenges a long-standing norm of political independence in data collection and monetary policy, potentially eroding public trust and complicating global economic decision-making.

As the administration moves forward, the question of what steps Trump might take next—whether targeting the Fed or other agencies—remains a pressing concern for investors and economists.

Source:

[1] Reuters

[2] New

[3] Bloomberg

[4] Bloomberg

[5] Bloomberg

[6] Business

[7] Bloomberg