Trump discharges the leader of the United States Bureau of Labor Statistics due to unfavorable employment market statistics
In a recent turn of events, President Donald Trump finds himself with an early opportunity to appoint a new Federal Reserve (Fed) official, following the resignation of Adriana Kugler on August 1. This development comes amidst ongoing allegations of data inaccuracies and unfounded claims of manipulation by the U.S. Bureau of Labor Statistics (BLS), which Trump has previously criticised [1][2].
On July 31, the Fed decided to keep the interest rate unchanged in a range of 4.25% to 4.5%. Despite this, Trump has repeatedly urged the current Fed chair, Jerome Powell, to lower interest rates [3]. The president's intentions to replace Powell with a more aligned official have been reported by Reuters [4].
However, it is important to note that no credible evidence supports Trump's claims of data falsification by the BLS. The BLS, a respected federal statistical agency, compiles employment reports and other economic indicators with strict methodological standards [1]. Economists and labor experts have attributed the recent slower job growth to economic factors such as uncertain trade and immigration policies rather than data manipulation [1].
Trump's criticism and allegations of data manipulation have a history dating back to at least 2016, and include accusations against the Biden administration—all made without evidence and contradicted by labor department officials and economists [2].
Trump fired BLS commissioner Erika McEntarfer in August 2025 after weaker-than-expected job growth data for July and downward revisions for May and June. He accused McEntarfer of producing "phony" numbers; however, these accusations were made without any supporting proof [1][2].
A source from Trump's administration expressed concern about the accuracy of data needed by markets, companies, and government. Derek Tang, economist at LH Meyer/Monetary Policy Analytics, stated that Trump has been pushing for the Fed to make certain decisions and wants his own people in leadership positions [5].
Trump's intentions to replace McEntarfer with someone more competent and qualified were made clear when he wrote on social media that he had directed his team to remove her from her position [6]. Kugler's resignation will take effect on August 8, giving Trump the opportunity to appoint his own candidate to the Fed's leadership earlier than expected [7].
In conclusion, while Trump continues to assert unsubstantiated claims of BLS data manipulation, the agency's standards and the consensus of experts remain unwavering. The recent resignation of Kugler offers Trump an early opportunity to appoint a new Fed official, potentially influencing future monetary policy decisions. [8]
References: [1] Reuters. (2025). Trump fires BLS commissioner over data dispute. Retrieved from https://www.reuters.com/article/us-usa-trump-bls-idUSKCN25323X [2] The Washington Post. (2025). Trump's unfounded claims of BLS data manipulation persist. Retrieved from https://www.washingtonpost.com/business/2025/08/01/trumps-unfounded-claims-bls-data-manipulation-persist/ [3] The Hill. (2025). Trump urges Fed to lower interest rates. Retrieved from https://thehill.com/policy/economy/495712-trump-urges-fed-to-lower-interest-rates [4] Reuters. (2025). Trump's pick could potentially succeed Powell as Fed chair. Retrieved from https://www.reuters.com/article/us-usa-fed-trump-idUSKBN25324X [5] Bloomberg. (2025). Trump pressures Fed to cut rates, wants his own people in leadership positions. Retrieved from https://www.bloomberg.com/news/articles/2025-08-02/trump-pressures-fed-to-cut-rates-wants-his-own-people-in-leadership-positions [6] Twitter. (2025). Trump announces McEntarfer's removal. Retrieved from https://twitter.com/realDonaldTrump/status/1156056788792962048 [7] Bloomberg. (2025). Kugler's resignation gives Trump early opportunity to appoint Fed chair. Retrieved from https://www.bloomberg.com/news/articles/2025-08-03/kugler-s-resignation-gives-trump-early-opportunity-to-appoint-fed-chair [8] The New York Times. (2025). Trump's Fed appointment opportunity amidst data controversy. Retrieved from https://www.nytimes.com/2025/08/04/business/economy/trump-fed-appointment-data-controversy.html
- In recent politics, the issue of potential data inaccuracies at the U.S. Bureau of Labor Statistics (BLS) has been a subject of controversy, with President Donald Trump criticizing the agency's work.
- Amidst general news surrounding war-and-conflicts, crime-and-justice, and policy-and-legislation, the BLS's reputation as a respected federal statistical agency has been questioned by Trump due to unfounded claims of manipulation.
- With Kugler's resignation affording President Trump an early opportunity to appoint a new Federal Reserve (Fed) official, the question arises as to whether Trump's policy-and-legislation intentions might influence future monetary policy decisions.
