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Trump Fires Jobs Chief Over ‘Rigged’ Report Claims

A Sudden Shakeup at the Bureau of Labor Statistics

In a stunning and highly controversial move, former President Donald Trump has fired Dr. Erika McEntarfer, the U.S. Commissioner of Labor Statistics, accusing her of deliberately skewing employment data to serve political ends. The dismissal, announced on Trump’s Truth Social platform on August 1, has sent ripples through Washington, with economists, statisticians, and political analysts questioning both the timing and the rationale behind the decision.

The core of the issue stems from July’s jobs report, which revealed that the U.S. economy added only 73,000 jobs—far below economists’ forecast of 105,000. Additionally, job gains for May and June were revised downward by a combined 258,000, sparking concern over a possible economic slowdown. But Trump saw more than just economic warning signs—he saw what he called political tampering.

Trump’s Claims: A Battle Over Trust and Data

Without offering concrete evidence, Trump alleged that McEntarfer—who was appointed by President Joe Biden and confirmed by the Senate in early 2024—was involved in a scheme to “manipulate” jobs data to make the Republican-led economic performance appear weaker and to bolster Democratic nominee Kamala Harris during the 2024 election.

“We need accurate Jobs Numbers,” Trump declared. “Important numbers like this must be fair and accurate—they can’t be manipulated for political purposes.”

He went further, accusing McEntarfer of overseeing previous reports that were later revised downward, asserting that the agency had released overly optimistic data before the election, only to quietly correct them afterward.

However, official records tell a different story. The U.S. Department of Labor publicly disclosed in August 2024—well before the election—that job creation between April 2023 and March 2024 had been overestimated by 818,000. This type of benchmarking revision is common and part of the agency’s routine process of aligning survey data with tax records.

Who Is Erika McEntarfer?

Dr. McEntarfer is no political novice. A seasoned labor economist with more than two decades in federal service, she has held positions at both the U.S. Census Bureau and the Treasury Department. Her appointment to the Bureau of Labor Statistics (BLS) was met with bipartisan support at the time, largely due to her professional track record and nonpartisan background.

Yet, in Trump’s view, her leadership raised questions—not for her credentials, but for what he calls “untrustworthy numbers.” Speaking to reporters, he didn’t mince words:

“I fired her because I think her numbers were wrong.”

Pushback from the Statistical Community

The reaction from former Labor Department officials has been swift and unequivocal. A statement released by a coalition of former BLS commissioners and staff—signed by William Beach, who served as commissioner under Trump—called the accusation “baseless” and “damaging.”

“The Commissioner does not determine what the numbers are but simply reports on what the data show,” the statement clarified.

Experts emphasized that the methodology behind jobs data is purposefully decentralized. Hundreds of career civil servants contribute to the report each month, ensuring that no single individual can alter the outcome. The final report goes through multiple layers of verification before release.

Heidi Shierholz, former chief economist at the Labor Department, said it would be “literally impossible” for any one person—even the commissioner—to manipulate the figures without a massive number of people noticing.

“They’re not political,” she added. “There’s no way those numbers could be faked without widespread objection.”

The Complexity of the Jobs Report

Keith Hall, who led the BLS from 2008 to 2011 under Presidents George W. Bush and Barack Obama, explained that the final employment figure is built from inputs provided by hundreds of economists and survey specialists. According to Hall, even eight to ten staff members see the final number just before its release.

“It’s essentially impossible for the numbers to be fudged,” he said. “All the detail must add up, and many eyes are on it.”

Hall further criticized Trump’s remarks, noting that if there is a downturn in employment trends, such developments are typically reflected across multiple economic indicators—not just the monthly jobs report.

“If the president wants to know what made the numbers weak, he needs to look in the mirror, not at BLS,” he said.

Fallout and What Comes Next

Despite the backlash, Trump has not yet announced a replacement for McEntarfer, stating only that he plans to appoint “someone much more competent and qualified.” The sudden vacancy in one of the government’s most respected statistical agencies has left both markets and officials wondering how politicized the traditionally neutral BLS might become under future leadership.

Labor Secretary Lori Chavez-DeRemer initially did not challenge the July jobs report but later issued a statement expressing agreement with Trump’s emphasis on data integrity.

Meanwhile, many in the economic community have expressed concerns that this episode could undermine public trust in government-produced statistics at a time when the economy is facing new challenges.

The firing of Erika McEntarfer marks a rare and deeply controversial moment in the history of the U.S. Bureau of Labor Statistics—an agency built on decades of nonpartisan credibility. While Donald Trump’s accusations have fueled political debate and drawn sharp responses from former officials and economists, the broader concern now lies in the precedent this sets. If statistical agencies become political battlegrounds, the reliability of critical economic data could be called into question by the very institutions meant to uphold it. As the dust settles, the country finds itself not only facing uncertainty in the job market but also confronting the fragility of trust in facts themselves.

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Stock Market Shaken by Weak Jobs Data and Trump’s Tariff Shock

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Stocks witnessed a dramatic tumble as August began, with Wall Street shaken by weaker-than-expected U.S. jobs data and a sudden rise in tariff rates announced by President Donald Trump. The stock market fell sharply, signaling renewed fears of a slowing economy. The Dow plunged over 500 points, while the Nasdaq and S&P 500 followed suit. Fresh tariffs on Canadian and transshipped goods, paired with poor payroll growth, cast a dark shadow over investor sentiment. Hopes of a Federal Reserve rate cut now appear too late to rescue the sinking confidence.

📰 STORY HIGHLIGHTS READ BOX:

Dow plunges 502 points; Nasdaq down 2.1% as economic jitters mount
July jobs rise only 73,000 vs. 100,000 forecast; prior months revised sharply down
Big banks slide: JPMorgan, BofA, Wells Fargo each fall over 3%
Fed rate cut odds surge to 66% as market bets on urgent policy response
Trump ramps up tariffs: Canadian imports now face 35% levy
Amazon falls 7% on weak forecast; Apple bucks trend with 2% jump
25 S&P 500 stocks hit 52-week lows, many to early-pandemic levels
Only 7 reach new highs, including Northrop Grumman and CBOE

U.S. markets began the new month on shaky ground, as investors confronted a potent mix of disappointing employment data and intensified tariff pressures. The fragile optimism that had propped up equities in recent weeks gave way to widespread selloffs, rattling sectors from banking to tech.

The Dow Jones Industrial Average tumbled by 502 points, or 1.4%, as investors digested mounting evidence of an economic slowdown. The broader S&P 500 fell 1.6%, while the Nasdaq Composite suffered the steepest loss, dipping 2.1%, weighed down by dismal corporate guidance and a sudden shift in market sentiment.

At the heart of the downturn was July’s jobs report—a data point often viewed as a litmus test for the broader economy. Instead of the anticipated 100,000 gain in nonfarm payrolls, the economy managed to add only 73,000 jobs last month, according to the Labor Department. Worse yet, revisions to prior months painted an even grimmer picture: June’s figures were slashed to a mere 14,000 from 147,000, and May’s count was revised downward to just 19,000 from the previously reported 125,000.

This disheartening trend suggested not just a one-off miss, but a more entrenched softening in labor market momentum.

The market’s reaction was swift. Banking stocks, traditionally seen as bellwethers for economic health, took a heavy blow. JPMorgan Chase retreated by roughly 4%, while Bank of America and Wells Fargo both shed more than 3%. Investors grew wary of how a slower economy might crimp loan demand and squeeze financial margins.

Industrial giants weren’t spared either. Shares of GE Aerospace and Caterpillar slipped 3%, reflecting fears that demand for machinery and transport services may falter amid growing economic headwinds.

“The numbers gave the Fed the ammunition it needs now to cut in September,” said Jay Woods, Chief Global Strategist at Freedom Capital Markets.
“But unfortunately, now it looks too little too late.”

That sentiment echoed across trading floors. Just days ago, Federal Reserve Chair Jerome Powell had hinted at a more cautious approach, suggesting the central bank wanted to assess the impact of tariffs on inflation before making a move. But with labor figures faltering, market expectations pivoted quickly. Traders now place a 66% chance on a rate cut as early as September, according to CME Fed futures data—up sharply from midweek levels.

As if the labor news wasn’t enough, global trade tensions escalated after President Donald Trump moved forward with a round of modified tariffs. The White House announced overnight hikes ranging from 10% to 41%, including a new 40% penalty on goods transshipped in efforts to sidestep duties. In a particularly aggressive turn, Canadian imports—already facing a 25% tariff—will now be hit with a 35% levy.

Markets reeled at the breadth of the new duties, particularly given Canada’s status as a key U.S. trading partner.

Jeffrey Schulze, Head of Economic and Market Strategy at ClearBridge Investments, said the jobs report added a worrying dimension to already heightened trade anxieties.
“While investors have been viewing the start of the Fed’s cutting cycle as a positive for risk assets, today’s release is best characterized as ‘bad news is bad news.’”
“With job creation now hovering at stall speed, and a tariff wall looming ahead, there’s real concern that we could soon see negative payroll prints,” he warned.
“That may bring recession fears roaring back.”

Tech stocks—typically the engines of market optimism—also faltered. Amazon tumbled more than 7% after forecasting weaker-than-expected operating income for the current quarter, casting a shadow over the sector. However, Apple provided a rare bright spot, rising 2% after topping Wall Street’s earnings and revenue expectations.

The overall market mood remained tepid, despite upbeat results from companies like Microsoft and Meta Platforms earlier in the week. Thursday had already marked the S&P 500’s third straight daily decline. Early-session intraday highs evaporated as the tech rally lost momentum, leaving little resistance against Friday’s broader pullback.

In total, 25 S&P 500 companies touched new 52-week lows—a stark signal of declining investor confidence. Among them:

Charter Communications (lowest since May 2024)
Chipotle Mexican Grill (since Nov. 2023)
Lululemon, UnitedHealth, and UPS (each hitting levels unseen since early pandemic months)
Accenture, Dow Inc, CarMax, and Tyson Foods also marked fresh lows

On the upside, only seven S&P 500 stocks reached new highs.
These included:

Altria, trading at its best level since 2018
Northrop Grumman, hitting an all-time peak
CBOE Holdings, ResMed, American Electric Power, Evergy, and Xcel Energy, all reaching multi-year or record levels

Looking ahead, all eyes turn to how the Fed navigates mounting economic and geopolitical risks. As the delicate balance between policy and data becomes more urgent, investors are bracing for a volatile ride in the weeks to come.

As investors absorb the jolt of frail job growth and aggressive tariff revisions, the stock market stands at a critical crossroads. The sharp decline across major indexes reflects growing unease about the strength of the U.S. economy. While hopes for a timely Federal Reserve rate cut remain alive, they may no longer be enough to soothe market nerves. With trade tensions deepening and employment gains fading, Wall Street braces for turbulent days ahead—where every move, policy, or print could tip the fragile balance of investor confidence.