Trump's selected former labor statistics leader voices concern over McEntarfer's termination, warning of a hazardous precedent established.
In an unprecedented move, U.S. President Donald Trump fired Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer on August 2, 2025, accusing her without evidence of falsifying job numbers to politically harm him and benefit Democrats ahead of the 2024 election.
Trump's decision, which came after a weaker than expected July nonfarm payrolls report, has sparked controversy and raised serious concerns over the independence and credibility of U.S. economic statistics. The BLS, traditionally seen as a politically neutral agency providing the "gold standard" economic data relied upon globally, has been accused of politicization.
The firing was met with criticism from McEntarfer's immediate predecessor, William Beach, who described it as setting a "dangerous precedent." The Friends of BLS, a support group for the agency established by several professional and advocacy groups, also condemned the politicization and defended the methodological rigor and independence of the BLS. They stated that Trump's rationale for firing McEntarfer was without merit and undermines the credibility of federal economic statistics.
The Friends of BLS have called on Congress to investigate the factors that led to Commissioner McEntarfer's removal. They argue that such actions threaten the apolitical tradition of the BLS and could lead to increased skepticism among economists and markets about the accuracy and independence of U.S. labor statistics.
The recent BLS reports have revised U.S. jobs growth downward substantially, with May and June job growth numbers being lowered by over 125,000 and 133,000 respectively, and July job additions coming in well below expectations. While these revisions add complexity to job data interpretation, they do not substantiate claims of intentional falsification.
The politicization of the BLS has had immediate effects on the financial markets. Wall Street experienced its worst day since late May on Friday, following the jobs report. U.S. Treasury yields slid as traders rushed to the safety of bonds in response to the jobs report. Various exchange-traded funds (ETFs) have been affected, including those tracking the benchmark S&P 500 index and those linked to the fixed-income markets.
Trump's actions also extend to his criticism of Federal Reserve Chairman Jerome Powell, who he has called on to resign, similar to the way he called for the resignation of Fed Governor Kugler.
In summary, Trump's firing of McEntarfer reflects a dramatic escalation in political interference with a key federal statistical agency, potentially undermining confidence in U.S. economic data and threatening the apolitical tradition of the BLS. The wider response from professional and advocacy groups like Friends of BLS likely emphasizes preserving methodological integrity and resisting political pressure, although detailed statements were not accessible in the provided sources.
- The politicization of the Bureau of Labor Statistics (BLS) by President Trump, as seen in the firing of Commissioner Erika McEntarfer, has sparked concerns over the independence and credibility of federal economic statistics, which are often used for investment decision-making, policy-and-legislation, and general news.
- The Friends of BLS, a support group for the agency, have called on Congress to investigate the factors that led to McEntarfer's removal, arguing that such actions could lead to increased skepticism about the accuracy and independence of U.S. labor statistics, impacting not only politics but also the broader economy.
- Criticism of the BLS and its commissioner hasn't been limited to McEntarfer's firing. Trump has also been vocal in his criticism of Federal Reserve Chairman Jerome Powell, raising questions about the potential politicization of key government bodies affecting investment, policy-and-legislation, and general news.
