Trump to fire BLS because tariffs cause stock market drop

US President Donald Trump has said he would dismiss the head of the agency accused of publishing some of the most attentive viewing of economic data in America, after the weaker report was expected to have an additional concern about her tariff policy.

In the position of social media, Trump – without evidence – accused Macedarfer’s commissioner of manipulating jobs for political reasons.

The decision was shocked by Wall -Street and anxious about the intervention of the White House in economic data at a time when many forecasters predict Trump tariffs that will harm the economy.

It happened when the world’s stock markets shuddered after Trump advanced forward, planning to dramatically raise tariffs for goods around the world.

In the United States, three major indexes fell, and S&P closed 1.6% below, after previous sales in Europe and Asia.

Ryan Sweet, Chief American Economist of Oxford Economics, said the decision to dismiss Commissioner Labor Statistics Bureau (BLS) is that quality economic data is important for enterprises and not just replicated with private sources.

“Of course, this is a step in a very bad direction,” he said. “If there are any questions around the data integrity … It will create a lot of problems.”

Trump rejected concern about his tariff plans, which he said will increase the production in the US and balance global trade.

But the new data this week and a number of updates from the tariff costs are stretched out by these forecasts harder to ignore.

On Friday, the Labor Statistics Bureau reported that the US employers added only 73,000 jobs in July. He also dramatically revised job growth in May and June, reporting 250,000 less jobs than previously thought.

Trump referred to reviews, announcing his decision to dismiss Ms Moderfer.

“We need accurate job numbers. I sent my team to fire this political designated Biden immediately,” he wrote on social media.

The head of the Labor Department, which controls BLS, wrote on the social media that the deputy commissioner of the Agency William Viatrovsky would enter the role while finding a replacement.

The Labor Department did not immediately respond to a comment request. BLS reviews job numbers every month when new data are coming, usually adding or subtracting ten of the thousand positions.

Although the changes of this month were much higher than usual, analysts said the updates met other data indicating the slowdown.

Some have assumed that they may display hit for small businesses that are usually slower to respond to surveys and especially vulnerable to tariffs.

“The reviews are normal,” said Mr. Sweet. “They try to do it right.”

Ms. Meerferer worked in the government for over 20 years before nominating to head BLS in 2023. It was later confirmed by the US Senate.

Michael Stack, director of economic policy research at the American Institute of Enterprises, defended Ms Entarfer, saying she had carried herself with “great integrity”.

“It is necessary for the heads of decisions to understand that the government’s statistics are impartial and the highest quality. Stoping doubts about this, the president harms the US,” he wrote on social media.

Jed Kolko, a senior employee of the International Economy Institute, said the shooting had raised serious anxiety. It comes after the government scale the gathering of economic data, including inflation information, against the background of reducing government spending.

“For six months, I said that threats to economic data were more incidental damage than deliberate damage. No longer. The dismissal of the head is a five-headed intentional damage to the integrity of US economic data and the entire statistical system,” he wrote on social media.

Trump defended the decision and stated that her departure is necessary in order to have “people we can trust in these positions.”

“Why should anyone have to trust the rooms?” The president told reporters coming out of the White House on Friday. “I think the numbers were false, as before the election, and there were other times – so you know what I was doing? I fired it and you know what I did?” Correct. “

The fight for data is when Trump redorates trade policy by hitting goods from the world with new tariffs within 10% to 50%.

When Trump came with similar plans in April, the US rally scored more than 10% a week, problems that extend to the dollar and bond markets.

The stock market resumed after it suspended some of the sharpest measures, leaving less punishment, 10%is more expected. In recent weeks, indices in the US have been trading around all time.

Recent measures are less extreme than what Trump first spoke in April, but they still push the average tariff rate to approximately 17%, which is less than 2.5% at the beginning of the year.

“The reality is that Trump has hacked the fact that the markets have come back,” said Michael Gaid, Free Markets ETF portfolio in BBC’s bell opening. “Now he will try success again.”

The US shares opened in the morning below and the losses are accelerated throughout the day. The S&P 500 closed by 1.6%and the Dow decreased by 1.2%, and NASDAQ decreased by 2.2%.

France CAC 40 closed 2.9%and the German DAX decreased by 2.6%. In the UK, FTSE decreased by 0.7%.

Earlier, the leading index in South Korea fell by 3.8%, the Hang Sen Index in Hong Kong decreased by 1%, and Nikkei in Japan fell by 0.6%.

After the report on the jobs, Trump also launched the next chairman of the Federal Reserve Reserve Jerome Powell, who, he said, is moving too slowly to reduce borrowing costs.

Powell is headed by a committee of 12 people, which sets the Central Bank’s interest rate policy that affects interest rates on loans throughout the economy.

On Friday, one of the members of the voting of this committee, Adriano Kugarir, whose term was until the end of January, said she would resign, giving Trump the opportunity to establish someone new.