Trump’s first-term labor statistics chief denounces ‘groundless firing’ of successor – live | US news

Trump’s first-term labor statistics chief denounces ‘groundless firing’ of his successor

Bill Beach, a former Heritage foundation economist who was picked by Donald Trump in 2018 to oversee labor statistics, denounced on Friday what he called the “totally groundless firing of Dr Erika McEntarfer, my successor as Commissioner of Labor Statistics at BLS”.

Beach added that Trump’s order to remove the bearer of bad news on jobs “sets a dangerous precedent and undermines the statistical mission of the Bureau”.

He also co-signed a statement with Erica Groshen, who served as the commissioner before him, from 2013 to 2017, which began:

Today, President Trump called into question the integrity of the Employment Situation report that the BLS released this morning. He accused BLS Commissioner Erika McEntarfer of deliberately reporting false numbers to reflect poorly on this administration. This baseless, damaging claim undermines the valuable work and dedication of BLS staff who produce the reports each month. This escalates the President’s unprecedented attacks on the independence and integrity of the federal statistical system.

The President seeks to blame someone for unwelcome economic news. The Commissioner does not determine what the numbers are but simply reports on what the data show. The process of obtaining the numbers is decentralized by design to avoid opportunities for interference. The BLS uses the same proven, transparent, reliable process to produce estimates every month. Every month, BLS revises the prior two months’ employment estimates to reflect slower-arriving, more-accurate information.

This rationale for firing Dr McEntarfer is without merit and undermines the credibility of federal economic statistics that are a cornerstone of intelligent economic decision-making by businesses, families, and policymakers. US official statistics are the gold standard globally. When leaders of other nations have politicized economic data, it has destroyed public trust in all official statistics and in government science.

Other experts and elected officials were equally scathing in their response to Trump’s move.

“This will make it difficult to trust government sources on economic and financial data,” Rohit Chopra, the former director of the Consumer Financial Protection Bureau, wrote. “Many businesses and investors use these data sets to determine where they want to launch or grow, so this will have real costs.”

“Instead of helping people get good jobs, Donald Trump just fired the statistician who reported bad jobs data that the wanna-be king doesn’t like,” Elizabeth Warren, the Massachusetts senator and bankruptcy law expert, posted.

“No. Mr. President,” Bernie Sanders, the Vermont senator, wrote. “In America, you do not fire the head of the Bureau of Labor Statistics for releasing a jobs report that you don’t like. That’s what authoritarians do. We need serious economists in these positions, not hacks who will only tell you what you want to hear.”

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US stock markets drop on Trump’s tariffs and weak jobs report

US stocks slumped on Friday, with the S&P on track for its biggest daily percentage decline in more than three months as Donald Trump unveiled new import tariffs on dozens of trading partners and a surprisingly weak jobs report spurred selling pressure.

Shares in Amazon also fell after the company failed to meet expectations for its Amazon Web Services cloud computing unit.

Just hours before Trump’s latest self-imposed tariff deadline on Friday, the president signed executive orders imposing import taxes on goods imported from around the globe, including key trading partners such as Canada, Brazil, India, Japan, South Korea, Taiwan and the 27-nation European Union.

Investor confidence was also hit by new data showing that US job growth slowed more than expected in July, and was significantly lower than previously reported in May and June. Those job numbers prompted Trump to fire the messenger, commissioner of labor statistics Erika McEntarfer.

The jobs report significantly pushed up expectations that the Federal Reserve will cut interest rates at its next meeting in September.

According to preliminary data, the S&P 500 lost 101.60 points, or 1.60%, to end at 6,237.79 points, while the Nasdaq Composite fell 472.78 points, or 2.24%, to 20,649.67. The Dow Jones industrial average lost 543.97 points, or 1.23%, to close at 43,587.01.

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