White House defends firing of Bureau of Labor Statistics head as critics warn of trust erosion
By Doina Chiacu and Jasper Ward
White House economic advisers on Sunday defended President Donald Trump's firing of the head of the Bureau of Labor Statistics, pushing back against criticism that Trump's action could undermine confidence in official U.S. economic data.
Later on Sunday, Trump again criticized BLS Commissioner Erika McEntarfer, without providing evidence of wrongdoing, and said he would name a new BLS commissioner in the next three or four days.
U.S. Trade Representative Jamieson Greer told CBS that Trump had "real concerns" about the BLS data, while Kevin Hassett, director of the National Economic Council, said the president "is right to call for new leadership."
Hassett said on Fox News Sunday the main concern was Friday's BLS report of net downward revisions showing 258,000 fewer jobs had been created in May and June than previously reported.
Trump accused McEntarfer of faking the jobs numbers, without providing any evidence of data manipulation. The BLS compiles the closely watched employment report as well as consumer and producer price data.
The BLS gave no reason for the revised data but noted "monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors."
McEntarfer responded to her abrupt dismissal on Friday in a post on the Bluesky social media platform, saying it was "the honor of her life" to serve as BLS commissioner and praising the civil servants who work there.
McEntarfer's firing added to growing concerns about the quality of U.S. economic data and came on the heels of a raft of new tariffs on dozens of trading partners, sending global stock markets tumbling as Trump presses ahead with plans to reorder the global economy.
Investors also are watching the impact of the surprise resignation of Federal Reserve governor Adriana Kugler, which opened a spot on the central bank's powerful board and could shake up what was already a fractious succession process for Fed leadership amid difficult relations with Trump.
Trump said on Sunday he would announce a candidate to fill the open Fed position within the next couple days.
REVISIONS ARE COMMON
In an interview with CBS' "Face the Nation," Greer acknowledged there were always revisions of job numbers, "but sometimes you see these revisions go in really extreme ways."
Brian Moynihan, CEO of Bank of America, said large revisions of economic data could undermine public confidence and that government officials should develop ways of improving data quality.
"They can get this data, I think, other ways and I think that's where the focus ought to be: how do we get the data to be more resilient and more predictable and more understandable?" he said on CBS. "Because what bounces around is restatements ... that creates doubt about it."
Critics, including former leaders of the BLS, slammed Trump's move and called on Congress to investigate McEntarfer's removal, saying it would shake trust in a respected agency.
"It undermines credibility," said William Beach, a former BLS commissioner and co-chair of the group Friends of the BLS.
"There is no way for a commissioner to rig the jobs numbers," he said. "Every year we've revised the numbers. When I was commissioner, we had a 500,000 job revision during President Trump's first term," he said on CNN's "State of the Union."
Former Treasury Secretary Larry Summers, who worked in both the Clinton and Obama administrations, also criticized McEntarfer's firing.
"This is a preposterous charge. These numbers are put together by teams of literally hundreds of people following detailed procedures that are in manuals," Summers said on ABC's "This Week."
LARGE REVISION
The BLS surveys 121,000 employers - businesses and government agencies - each month, seeking their total payroll employment during the week in which the 12th day of the month falls. The response rate has fallen sharply since the COVID pandemic, from 80.3% in October 2020 to about 67.1% in July.
Knowing that, BLS allows late-arriving employer submissions, and revisions to earlier submissions, to be taken into account over the next two months.
That means each month's initial estimate of employment for the immediately preceding month also contains revisions to the two months before that.
The revisions in Friday's report were large by historic standards. The downward revision of 125,000 jobs for May was the largest between a second estimate and third estimate since a 492,000 reduction for March 2020. That was the largest ever and was reported in June 2020 for the payrolls report for May 2020.
© Thomson Reuters 2025.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yomiuri Shimbun
14 minutes ago
- Yomiuri Shimbun
Top Trump Aide Accuses India of Financing Russia's War in Ukraine
WASHINGTON, Aug 3 (Reuters) – A top aide to President Donald Trump on Sunday accused India of effectively financing Russia's war in Ukraine by purchasing oil from Moscow, after the U.S. leader escalated pressure on New Delhi to stop buying Russian oil. 'What he (Trump) said very clearly is that it is not acceptable for India to continue financing this war by purchasing the oil from Russia,' said Stephen Miller, deputy chief of staff at the White House and one of Trump's most influential aides. Miller's criticism was some of the strongest yet by the Trump administration about one of the United States' major partners in the Indo-Pacific. 'People will be shocked to learn that India is basically tied with China in purchasing Russian oil. That's an astonishing fact,' Miller said on Fox News' 'Sunday Morning Futures.' The Indian Embassy in Washington did not immediately respond to a request for comment. Indian government sources told Reuters on Saturday that New Delhi will keep purchasing oil from Moscow despite U.S. threats. A 25% tariff on Indian products went into effect on Friday as a result of its purchase of military equipment and energy from Russia. Trump has also threatened 100% tariffs on U.S. imports from countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Miller tempered his criticism by noting Trump's relationship with Indian Prime Minister Narendra Modi, which he described as 'tremendous.'
Yomiuri Shimbun
14 minutes ago
- Yomiuri Shimbun
Texas Democrats to Flee State, Blocking Plan to Pad Gop's Control of Congress
Democrats in the Texas legislature said they were fleeing the state Sunday to block a redistricting plan backed by President Donald Trump aimed at preserving the GOP's slim House majority, escalating tensions as a broader fight over congressional district lines unfolds throughout the country ahead of the 2026 midterms. Texas Democrats have twice deployed the same tactic to combat legislation in the 22 years since Republicans have controlled all of state government, but their efforts ultimately failed. This time, Democrats plan to stay away for two weeks to run out the clock on a special legislative session called by Gov. Greg Abbott (R) to draw a map that would give Republicans five more House seats. The Texas House can conduct business only when two-thirds of its 150 members are present. At least 51 of the chamber's 62 Democrats will need to boycott the session to prevent Republicans from acting on the new map. The lawmakers could return a couple of days before the special session ends Aug. 19 and use other stall tactics, but any success could be short-lived as Abbott can immediately call another 30-day session. The Democrats, who said they were flying to Chicago, are making a risky bet. They could each face $500 daily fines and political blowback. As part of the special session, lawmakers are considering legislation to respond to last month's deadly floods, and blocking action on that issue will likely be unpopular. Texas Attorney General Ken Paxton (R) has threatened to arrest legislators who break quorum, but he won't have jurisdiction over them if they stay out of state. 'We're not walking out on our responsibilities,' Texas Rep. Gene Wu, chairman of the Democratic caucus in his chamber, said in a statement. 'We're walking out on a rigged system that refuses to listen to the people we represent. As of today, this corrupt special session is over.' The fight in Texas and a looming GOP-led redistricting effort in Ohio have kicked off a national battle, with Democrats in California, Illinois and New York threatening to retaliate by tilting their states' congressional districts further in favor of their party. The Democrats' embrace of an all-or-nothing gerrymandering strategy comes after many of them spent years backing plans to strip politics from the map-drawing process to ensure voters have fair, competitive districts. While states such as Arizona and Michigan have adopted nonpartisan systems for drawing maps, Texas and many other states have not, and partisans there have free rein to give themselves as much power as possible. Texas Republicans unveiled a map last week under pressure from Trump and Abbott that would shift five districts sharply to the right. A committee approved the map Saturday and the Texas House was expected to take it up Tuesday. Republicans hold 25 of the state's 38 congressional districts and under the new map they could take 30 next year. Trump won all 30 of the proposed districts by 10 points or more last year. Before Texas lawmakers unveiled their map, Trump said he favored 'a very simple redrawing' that would give Republicans more seats. 'We pick up five seats [in Texas] but we have a couple other states where we'll pick up seats also,' he told reporters last month. Texas Rep. Todd Hunter (R), the sponsor of the legislation to draw the new map, called the GOP proposal 'a good plan for Texas' that would give his party more seats in Congress. 'The primary changes … are focused on five districts for partisan purposes,' he said in committee. DNC Executive Director Ken Martin applauded Texas Democrats' response, saying their actions showed real leadership. 'Republicans thought they could just rig the maps and change the rules without the American people taking notice,' he said in a statement. 'They were dead wrong.' All states must draw new district lines at the beginning of each decade to account for population shifts identified by the U.S. Census. Where they place the lines can greatly favor one party over the other. Most states give legislators the power to draw the districts, but eight states use independent commissions in hopes of preventing partisan power grabs. After the 2020 census, Texas Republicans focused on keeping incumbents safe. The plan to redraw district lines in the middle of a decade is unusual and Republicans are open about using their power to stave off potential losses during the midterm elections, which historically have gone against the sitting president's party. Republicans hold a 219-212 majority in the House with four vacancies, and any cushion could protect their ability to deliver on Trump's agenda. His signature tax and immigration bill, for example, squeezed through the chamber last month, 218-214. Trump has signaled he will be heavily involved in the midterms, hosting fundraising dinners at his resorts and weighing in on social media with plans to target lawmakers with whom he disagrees. MAGA Inc., a super PAC aligned with Trump, raised a hefty $177 million in the first half of the year, according to a filing last week with the Federal Election Commission. California Gov. Gavin Newsom (D), a frequent target of Trump's ire and a potential candidate for president in 2028, has said he is working on a plan to shift Republican districts in his state to the left if Texas adopts a new map. In a dig at the GOP, Newsom reposted a map Friday on X from another user that showed all 52 of the state's congressional districts could be drawn to favor Democrats – likely wiping out the reelection chances of the nine Republicans who represent the state. Enacting a new map in California is not as easy as it is in Texas because the California Constitution requires that a nonpartisan commission establish districts. Newsom has said he wants to call a special election in November to get approval from voters to change the state's map for 2026, 2028 and 2030 if Texas acts. Republicans and Democrats alike engaged in gerrymandering in some states in the most recent round of redistricting. Illinois, the new temporary home for Texas Democrats, has a map that received an F from the Princeton Gerrymandering Project because it is so heavily skewed toward Democrats. Other Democrats have spent years calling for removing politics from map drawing. In recent weeks, those voices have died down as Democrats say they cannot disarm if Republicans in states like Texas are going to strengthen their numbers. Eric Holder, who served as President Barack Obama's attorney general, has championed nonpartisan redistricting for years but said Sunday on ABC that Democrats might 'have to do things that perhaps in the past I would not have supported' in response to Texas Republicans. Democratic governors echoed that notion, saying they opposed partisan gerrymandering but needed to retaliate if Texas Republicans carry out their plans. 'I think we need to respond in kind,' said Kansas Gov. Laura Kelly, the chair of the Democratic Governors Association. If Texas changes its map, Democrats need to do the same wherever they can, said Minnesota Gov. Tim Walz (D), the Democratic nominee for vice president last year. 'It is a terrible spot we're in as a country, but not responding is going to make it even worse,' he said. Wisconsin Gov. Tony Evers (D) campaigned on ending gerrymandering, but he said he backs having states led by Democrats draw maps that favor their party if Texas acts. '[When] you're up against the wall, you have to do whatever you can to stop it,' he said. But changing maps in states led by Democrats is difficult. Kelly, Walz and Evers appeared at an event with the governors of Kentucky and Rhode Island, and all five governors are in charge of states where there appear to be few options for adding Democratic seats. Walz said Minnesota's courts would not allow gerrymandering in his state, and Republicans hold majorities in the legislatures of Kansas, Kentucky and Wisconsin. Democrats control all of Rhode Island's state government, but both of the state's two congressional districts already belong to Democrats.
Japan Today
44 minutes ago
- Japan Today
China pushes back at U.S. demands to stop buying Russian and Iranian oil
FILE - A Russian and Chinese national flag flutter near Tiananmen Gate for the visiting Russia's President Vladimir Putin, in Beijing, May 16, 2024. (AP Photo/Andy Wong, File) By DIDI TANG U.S. and Chinese officials may be able to settle many of their differences to reach a trade deal and avert punishing tariffs, but they remain far apart on one issue: the U.S. demand that China stop purchasing oil from Iran and Russia. 'China will always ensure its energy supply in ways that serve our national interests,' China's Foreign Ministry posted on X last week following two days of trade negotiations in Stockholm, responding to the U.S. threat of a 100% tariff. 'Coercion and pressuring will not achieve anything. China will firmly defend its sovereignty, security and development interests," the ministry said. The response is notable at a time when both Beijing and Washington are signaling optimism and goodwill about reaching a deal to keep commercial ties between the world's two largest economies stable — after climbing down from sky-high tariffs and harsh trade restrictions. It underscores China's confidence in playing hardball when dealing with the Trump administration, especially when trade is linked to its energy and foreign policies. U.S. Treasury Secretary Scott Bessent, emerging from the talks, told reporters that when it comes to Russian oil purchases, the "Chinese take their sovereignty very seriously.' 'We don't want to impede on their sovereignty, so they would like to pay a 100% tariff," Bessent said. On Thursday, he called the Chinese 'tough' negotiators, but said China's pushback hasn't stalled the negotiations. 'I believe that we have the makings of a deal,' Bessent told CNBC. Gabriel Wildau, managing director of the consultancy Teneo, said he doubts President Donald Trump would actually deploy the 100% tariff. 'Realizing those threats would derail all the recent progress and probably kill any chance' for Trump and Chinese President Xi Jinping to announce a trade deal if they should meet this fall, Wildau said. In seeking to restrict oil sales by Russia and Iran, a major source of revenue for both countries, the U.S. wants to reduce the funding available for their militaries, as Moscow pursues its war against Ukraine and Tehran funds militant groups across the Middle East. When Trump unveiled a sweeping plan for tariffs on dozens of countries in April, China was the only country that retaliated. It refused to give in to U.S. pressure. 'If the U.S. is bent on imposing tariffs, China will fight to the end, and this is China's consistent official stance,' said Tu Xinquan, director of the China Institute for WTO Studies at the University of International Business and Economics in Beijing. WTO is the acronym for the World Trade Organization. Negotiating tactics aside, China may also suspect that the U.S. won't follow through on its threat, questioning the importance Trump places on countering Russia, Tu said. Scott Kennedy, senior adviser and trustee chair in Chinese Business and Economics at the Center for Strategic and International Studies in Washington, said Beijing is unlikely to change its posture when it sees inconsistencies in U.S. foreign policy goals toward Russia and Iran, whereas Beijing's policy support for Moscow is consistent and clear. It's also possible that Beijing may want to use it as another negotiating tool to extract more concessions from Trump, Kennedy said. Danny Russel, a distinguished fellow at the Asia Society Policy Institute, said Beijing now sees itself as 'the one holding the cards in its struggle with Washington." He said Trump has made it clear he wants a 'headline-grabbing deal' with Xi, 'so rejecting a U.S. demand to stop buying oil from Iran or Russia is probably not seen as a deal‑breaker, even if it generates friction and a delay." Continuing to buy oil from Russia preserves Xi's 'strategic solidarity' with Russian President Vladimir Putin and significantly reduces the economic costs for China, Russel said. 'Beijing simply can't afford to walk away from the oil from Russia and Iran," he said. 'It's too important a strategic energy supply, and Beijing is buying it at fire‑sale prices.' A 2024 report by the U.S. Energy Information Administration estimates that roughly 80% to 90% of the oil exported by Iran went to China. The Chinese economy benefits from the more than 1 million barrels of Iranian oil it imports per day. After the Iranian parliament floated a plan to shut down the Strait of Hormuz in June following U.S. strikes on Iran's nuclear facilities, China spoke out against closing the critical oil transit route. China also is an important customer for Russia, but is second to India in buying Russian seaborne crude oil exports. In April, Chinese imports of Russian oil rose 20% over the previous month to more than 1.3 million barrels per day, according to the KSE Institute, an analytical center at the Kyiv School of Economics. This past week, Trump said the U.S. will impose a 25% tariff on goods from India, plus an additional import tax because of India's purchasing of Russian oil. India's Foreign Ministry said Friday its relationship with Russia was 'steady and time-tested." Stephen Miller, White House deputy chief of staff and a top policy adviser, said Trump has been clear that it is 'not acceptable' for India to continue financing the Ukraine war by purchasing oil from Russia. 'People will be shocked to learn that India is basically tied with China in purchasing Russian oil,' Miller said on Fox News Channel's 'Sunday Morning Futures.' He said the U.S. needs 'to get real about dealing with the financing of this war.' Sen. Lindsey Graham, a Republican from South Carolina, is pushing for sanctions and tariffs on Russia and its financial backers. In April, he introduced a bill that would authorize the president to impose tariffs as high as 500% not only on Russia but on any country that 'knowingly' buys oil, uranium, natural gas, petroleum products or petrochemical products from Russia. "The purpose of this legislation is to break the cycle of China — a communist dictatorship — buying oil below market price from Putin's Russia, which empowers his war machine to kill innocent Ukrainian civilians,' Graham said in a June statement. The bill has 84 co-sponsors in the 100-seat Senate. A corresponding House version has been introduced, also with bipartisan support. Republicans say they stand ready to move on the sanctions legislation if Trump asks them to do so, but the bill is on hold for now. Associated Press writers David McHugh in Frankfurt and Rajesh Roy in New Delhi and researcher Yu Bing in Beijing contributed to the report. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
