Washington/New York, United States – US President Donald Trump fired a senior Labor Department official on Friday after shockingly weak US labor market data and accused her without evidence of manipulating the numbers, adding to already growing concerns about the quality of economic data released by the federal government.
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In a second surprising economic policy development, the door opened for Trump to leave a mark on the Federal Reserve, with which he clashes almost daily for not cutting interest rates, much earlier than expected when Federal Reserve Governor Adriana Coogler unexpectedly announced her resignation on Friday afternoon.
These two developments have led to further shocks in a stock market already reeling from its recent wave of tariff announcements and weak jobs data. The benchmark S&P 500 index fell (.SPX), the Saudi stock market index fell by 1.6%, its largest daily decline in more than two months.
Trump accused Erika McIntarver, appointed by former President Joe Biden, of falsifying job numbers. There is no evidence to support Trump’s claims of manipulation by the Bureau of Labor Statistics, the statistical body that prepares closely monitored employment reports, as well as consumer and producer price data.
“We need accurate job numbers,” Trump said in a post on Truth Social. I have directed my team to remove this political candidate from Biden immediately. She will be replaced by a more competent and qualified character.”
Data concerns
A Trump administration official, who requested anonymity, said that despite the noise of economic data, the White House is not satisfied with the extent of the adjustments to the recent data, and with the low percentage of responses to polls.. The problem began during the COVID-19 pandemic and has not been addressed in the years since.
“There are underlying problems that have been worsening for years and have not yet been addressed,” the official said. Markets, businesses, and government need accurate data, but we simply haven’t had it.
The Bureau of Labor Statistics (BLS) has already reduced the volume of sample collection for consumer price data and producer price reports, citing limited resources. The government conducts surveys for approximately 121,000 companies and government agencies, representing approximately 631,000 individual job sites, to prepare employment reports.
A Reuters poll conducted last month showed that 89 out of 100 senior policy experts had at least some concerns about the quality of US economic data, and most expressed concern that authorities were not addressing the issue urgently enough.
The Federal Reserve changed faster than expected
Meanwhile, Coogler’s surprise decision to leave the Federal Reserve next weekend gives Trump a earlier-than-expected opportunity to install a potential successor to Federal Reserve Chairman Jerome Powell on the central bank’s board of governors.
Trump has repeatedly threatened to fire Powell because the Fed chairman oversaw a policymaking body that did not cut interest rates as Trump had requested. Powell’s term ends next May, although he can remain on the Federal Reserve Board of Directors until January 31, 2028, if he wishes.
Trump will now be able to choose a Federal Reserve governor to replace Coogler and complete her term, which ends on January 31, 2026. The governor who holds the remainder of his term can then be reappointed for a full term of 14 years.
Some speculation has focused on the possibility of Trump being chosen as a potential Federal Reserve Chairman to fill the position temporarily. Prominent candidates for the next Federal Reserve presidency include Trump’s economic advisor, Kevin Hassett; Treasury Secretary Scott Besant; former Federal Reserve Governor Kevin Warsh; and Governor Chris Waller, whom Trump appointed this week. Waller opposed the central bank’s decision to keep interest rates steady, saying he would prefer to start cutting them now.
Derek Tang, an analyst at research firm LH Mayer, said: “I do not think there are any political motives behind what Coogler is doing, although the consequence of what it is doing is exposing Trump’s hoax”. “She puts the ball in his court and says, ‘Look, you’re putting a lot of pressure on the Fed, and you want some control over the candidates, well, this is the place to be,'” he added.
