WASHINGTON, USA — President Donald Trump has abruptly fired the head of the Bureau of Labor Statistics (BLS), Erika McEntarfer, alleging—without evidence—that she manipulated economic data for political purposes, a move that has sent shockwaves through global markets and raised deep concerns about the independence of America’s statistical institutions.
The decision came on the heels of a disappointing July jobs report, which showed the US added only 73,000 new jobs, far below expectations.
The BLS also revised its May and June job growth figures downward by 250,000—an unusually large adjustment that drew Trump’s ire.
“We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY,” the president wrote on social media on Friday, August 1, 2025.
McEntarfer, a career civil servant who had led the BLS since her near-unanimous Senate confirmation in 2023, called her tenure “the honour of my life” and praised her colleagues’ commitment to public service in a farewell statement.
Financial markets recoiled at the news. The S&P 500 fell 1.6%, the Dow Jones Industrial Average dropped 1.2%, and the Nasdaq tumbled 2.2% amid fears of White House interference in the integrity of economic reporting.
“This is a step in a very bad direction,” said Ryan Sweet, chief US economist at Oxford Economics.
“If there are any questions around the integrity of the data, it will create a lot of problems for businesses and policymakers alike.”
Jed Kolko, a senior fellow at the Peterson Institute for International Economics, went further.
“Firing the head of the BLS is five-alarm intentional harm to the integrity of US economic data and the entire statistical system,” he wrote on social media.
The turmoil coincided with renewed trade tensions, as Trump pressed forward with plans to raise tariffs on global imports, ranging from 10% to as high as 50%.
The White House argues the tariffs will support domestic manufacturing, but analysts warn the costs could outweigh the benefits.
Markets in Europe and Asia also slumped in response to the US trade measures.
France’s CAC 40 closed down 2.9%, Germany’s DAX fell 2.6%, and London’s FTSE lost 0.7%.
In Asia, South Korea’s KOSPI shed 3.8%, while Hong Kong’s Hang Seng dropped 1% and Japan’s Nikkei declined 0.6%.
Michael Gayed, a portfolio manager at The Free Markets ETF, said Trump was emboldened by the markets’ recovery earlier in the year.
“Now he’s going to try his luck again,” Gayed told the BBC.
Trump’s firing of McEntarfer has been met with widespread condemnation from economists and public policy experts who argue that statistical agencies must remain nonpartisan.
Michael Strain, director of economic policy studies at the conservative American Enterprise Institute, defended McEntarfer’s reputation.
“She has conducted herself with great integrity,” he said.
“By casting doubt on the objectivity of government statistics, the president is damaging the United States.”
McEntarfer’s dismissal comes amid broader rollbacks of data collection at federal agencies due to budget cuts, raising fears that economic decision-making may be increasingly based on incomplete or politicised data.
The BLS routinely revises job figures as more comprehensive data becomes available. While the revisions this month were unusually large, experts say they are consistent with signs of an economic slowdown and do not suggest foul play.
“Revisions are normal,” said Sweet. “They’re trying to get this right.”
Trump also reignited his feud with Federal Reserve Chairman Jerome Powell, blaming him for not acting quickly enough to lower interest rates.
In a potentially consequential move, Adriana Kugler, a voting member of the Fed’s interest rate-setting committee, announced her resignation on Friday, August 1, 2025, giving Trump the opportunity to shape future monetary policy.
“Why should anybody trust numbers?” Trump told reporters outside the White House.
“I believe the numbers were phony, just like they were before the election.”
Deputy Commissioner William Wiatrowski has been named acting head of the BLS pending a search for McEntarfer’s replacement.
