In a controversial move that sent shockwaves through financial markets and the political establishment, President Donald Trump has fired Erika McEntarfer, head of the Bureau of Labor Statistics (BLS), accusing her without evidence of manipulating jobs data for political reasons. The dismissal follows a weaker-than-expected July jobs report and sharp market declines amid concerns over Trump’s escalating tariff policies.
McEntarfer, a respected economist with over two decades of government service, described her role as “the honour of my life,” while defending the integrity and importance of the agency’s work. Her removal has raised alarms about the politicization of economic data, with critics warning of long-term damage to public trust in federal statistics.
The BLS reported that only 73,000 jobs were added in July, alongside a major downward revision of 250,000 jobs from May and June. Trump seized on the figures, calling them “phony” and claiming they undermined confidence in the economy. “We need accurate Jobs Numbers,” he wrote on social media, directing that McEntarfer be fired immediately.
Economists and policy experts have widely condemned the move. Ryan Sweet of Oxford Economics called it “a step in a very bad direction,” emphasizing the necessity of reliable data for business and policymaking. Michael Strain from the American Enterprise Institute said McEntarfer had served with “great integrity,” warning that Trump’s actions damage the credibility of U.S. economic institutions.
Meanwhile, global stock markets tumbled. The S&P 500 dropped 1.6%, the Dow fell 1.2%, and the Nasdaq lost 2.2%, with similar declines across European and Asian indices. Analysts linked the sell-off to renewed tariff hikes announced by Trump, which push the average U.S. tariff rate to 17% up from 2.5% earlier in the year.
Adding to the upheaval, Federal Reserve Governor Adriana Kugler announced her resignation, allowing Trump a chance to influence the Fed’s interest rate decisions further. With markets reeling and institutions under fire, Trump’s actions have prompted concerns over the independence of America’s economic system and its global credibility.
