On August 1, 2025, President Trump abruptly removed Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer , following the release of a weak July jobs report showing only 73,000 new nonfarm payrolls , far below expectations, and nearly 258,000 job losses through downward revisions to May and June figures
Trump accused the report of being “ rigged ,” alleging political bias without evidence, and demanded McEntarfer be replaced “with someone much more competent.” Deputy Commissioner William Wiatrowski was appointed as interim director.
Why It Matters
The firing came on the heels of sharp downward revisions to the prior months’ data, with May’s job gains adjusted to just 19,000 and June to 14,000 according to Yahoo Finance . Economists warn that undermining the independence of the BLS threatens confidence in the integrity of U.S. economic data.
For traders, this incident introduces execution and policy risk . If official data becomes politicised, confidence in market-moving indicators such as NFP could erode, increasing volatility around Fed forecasting and interest rate moves.
Markets React Sharply
Financial markets reacted swiftly:
- USD dropped ~1–2% against major currencies
- Treasury yields fell, pushing short-end yields to three‑month lows
- Fed rate cut odds for September surged to over 80% according to Reuters.
Trump’s Broader Power Play
This dismissal is part of a pattern: Trump has fired multiple independent-agency heads — including those from the National Labor Relations Board, Merit Systems Protection Board, and Nuclear Regulatory Commission — often after the Supreme Court allowed broader executive authority over such removals. Critics warn these moves could weaken institutional checks and the credibility of critical agencies.
What Traders Should Monitor
- Next BLS leadership appointments: Will Trump nominate political allies?
- Methodology shifts: Will data revisions increase or methodology be adjusted?
- Fed communications: With labor data debates heating up, the Fed’s guidance gains weight
- Volatility spikes: News flow around data credibility may fuel intraday swings
Key Takeaways
- Trump fired BLS Commissioner hours after weak July nonfarm payrolls and massive revisions
- Critics warn the move jeopardizes trust in U.S. economic data
- Markets punished USD and adjusted rate-cut expectations sharply
- Traders must now price in credibility risk around labor data releases
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