Trump Fires Data Chief, Sparks Fears of Political Interference in Economic Statistics

Washington, D.C. — President Donald Trump fired Erika McEntarfer, the commissioner of the Bureau of Labor Statistics (BLS), on Friday following disappointing job numbers for July. This unprecedented move in the history of U.S. economic data is raising alarms about potential political influence on government statistics.

The BLS reported that the U.S. economy added only 73,000 jobs in July, which fell short of expectations. In a series of social media posts, Trump accused McEntarfer of producing ‘rigged’ numbers aimed at harming him politically, without providing any evidence to support these claims.

Experts in economic statistics warn that tampering with the integrity of economic data has had dire consequences in other countries. For instance, Greece and Argentina saw their economies suffer due to manipulated statistics which led to loss of credibility in international markets. Janet Yellen, former Treasury secretary, expressed concern, stating this behavior is reminiscent of less stable governments. ‘This is the kind of thing you would only expect to see in a banana republic,’ she said.

The BLS, a key government agency since 1884, operates independently to provide accurate and nonpartisan data on various labor statistics. Economists rely heavily on this data to inform their decisions. Jerome Powell, chair of the Federal Reserve, emphasized the importance of independent data in maintaining economic stability, saying, ‘Good data helps not just the Fed, it helps the government, but it also helps the private sector.’

William J. Wiatrowski has been appointed as the acting commissioner following McEntarfer’s removal. While Wiatrowski is respected within the agency, experts are concerned about the potential for future political pressures that could affect the data produced. Amy O’Hara, a former Census Bureau official, raised questions about how this firing may influence future reports: ‘If the poverty numbers come in looking great, is the Census director going to get a raise?’

Critics, including former BLS commissioner Erica Groshen, argue that the integrity of government data must be preserved to ensure informed policymaking. As the country faces mounting partisan divides, the potential for politicization of economic data raises significant concerns about the path ahead for the United States’ statistical agencies, which might need to navigate increased scrutiny and pressure under a new administration.