Trump Fires BLS Chief Amid Tariff-Induced Market Turmoil

US President Donald Trump has sacked Erika McEntarfer, the commissioner of the Bureau of Labor Statistics (BLS), hours after the agency released disappointing jobs data that intensified concerns over his tariff policies. The move, announced on Friday, sparked accusations of politicising economic data, drawing sharp criticism from analysts and political figures.

In a post on Truth Social, Trump claimed McEntarfer had "RIGGED" jobs figures to undermine Republicans and himself, asserting the economy was "BOOMING" under his leadership. The BLS reported that US employers added only 73,000 jobs in July, well below the forecasted 109,000, and revised down job growth for May and June by 250,000, marking the largest such adjustment since 1979, excluding the Covid era. Analysts noted that such revisions are not uncommon, with 818,000 jobs revised downward over 12 months in 2023-4 under President Joe Biden.

The firing coincided with market unrest, as US stock indices fell sharply following the jobs report and Trump’s push for global import tariffs ranging from 10% to 50%. Heather Long, chief economist at Navy Federal Credit Union, called the figures a "gamechanger," attributing the weakening labour market to uncertainty from Trump’s trade policies. While Trump insists tariffs will boost US manufacturing, recent corporate updates highlight rising costs, rattling investor confidence. Critics condemned the dismissal as an attack on the integrity of economic data. Former Treasury Secretary Larry Summers likened it to actions in "authoritarian countries," while Friends of BLS, including two former commissioners, warned it could erode public trust in official statistics. Michael Strain of the American Enterprise Institute praised McEntarfer’s "great integrity," and Jed Kolko of the Peterson Institute called the move "five-alarm intentional harm" to US data systems. McEntarfer, a 20-year government veteran appointed by Biden in 2023, described her tenure as "the honour of my life." William Wiatrowski, the BLS deputy commissioner, will serve as interim head while a replacement is sought. Trump defended the decision, telling reporters McEntarfer’s removal was "the right thing" to ensure "people that we can trust" in key roles. He also intensified attacks on Federal Reserve Chair Jerome Powell, demanding interest rate cuts and suggesting Powell be "put out to pasture." The resignation of Fed committee member Adriana Kugler offers Trump a chance to appoint a new voice to the rate-setting panel. The tariff measures, less severe than earlier proposals that triggered a 10% market drop in April, will raise the average tariff rate to about 17% from 2.5%. Michael Gayed, a portfolio manager, told the BBC that Trump’s confidence was bolstered by markets recovering from prior tariff shocks, emboldening him to "try his luck again." As markets brace for further volatility, the firing of McEntarfer has heightened fears over the politicisation of critical economic institutions.