Welcome to Donald Trump's dystopian world
In sacking Erika McEntarfer via a post on his social media platform, Trump accused her of rigging the latest jobs data 'in order to make the Republicans, and ME, look bad.'
The data, which showed only a little over 100,000 jobs were added in the June quarter – the weakest growth in employment since the pandemic – contained major revisions to the May and June numbers, revising them down by 250,000. The unemployment rate edged up from 4.1 per cent to 4.25 per cent.
Revisions to the data, based on monthly surveys of businesses that progressively give the bureau (the BLS) a more accurate picture, are routine, but not usually as substantial as the one it released last week.
Their announcement, in the same week that Trump unveiled his 'Liberation Day 2.0' tariff regime, was always going to infuriate Trump because it casts a shadow over his claim that the US economy is booming and entering a 'Golden Age.'
In response to the data, the US sharemarket slumped, as did bond yields and the dollar. The odds on a Federal Reserve Board rate cut next month shortened significantly.
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The 'immediate' sacking of one of the world's most important – and respected – statistical agencies also ignited a storm of criticism from economists concerned that Trump's politicisation of the data and her position could undermine the integrity of data that is fundamental to understanding what's occurring within the economy.
Trump said that 'important numbers like these must be fair and accurate, they can't be manipulated for political purposes.'
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