US President Donald Trump announced that he has ordered the immediate dismissal of Bureau of Labor Statistics (BLS) Director Erika McEntarfer following the release of weak employment data in July.
In a post on Truth Social, Trump accused McEntarfer of politicizing employment data, calling her a “Biden political appointee.” No concrete evidence was presented for these accusations.
Bitcoin price experienced another sudden drop following the development:
Chart with minute candles showing the decline in BTC price.
“I have instructed my team to immediately remove this Biden political appointee. He will be replaced by someone far more competent and qualified. Such crucial data must be fair and accurate and cannot be manipulated for political purposes,” he said.
According to a BLS report released today, nonfarm payrolls increased by only 73,000 in July. Furthermore, data for the previous two months was revised downward by a total of approximately 260,000. The average employment gain for the past three months was only 35,000, marking the weakest performance of the post-pandemic era.
McEntarfer was appointed by former President Joe Biden in 2023 and took office after receiving Senate confirmation at the beginning of 2024. The BLS has not yet released a statement on the matter.
Employment data is generated through a three-month survey process. However, the initial company response rate has recently fallen below 60%. Before the pandemic, this rate was typically above 70%. Furthermore, the BLS issues major annual revisions each February, based on more robust but delayed data. The annual preliminary estimate released for 2024 was one of the largest revisions since 2009.
While addressing these revisions in his post, Trump also had harsh words for Fed Chair Jerome Powell. He argued that the Fed was “playing around” with interest rates and said Powell “should be retired now.”
*This is not investment advice.