If there’s one thing Donald Trump has put the 1,000 hours in to master, it’s telling people in a very dramatic way that they’re fired.
Driving the news: After abruptly firing the head of the Bureau of Labor Statistics (BSL) over a jobs report he claimed was rigged, President Trump is expected to appoint a new commissioner in the coming days. Members of Trump’s inner circle say he “wants his own people” in the historically apolitical agency.
- While U.S. economic data has long been seen as the gold standard globally, Trump claimed without evidence last week that former BSL chief Erika McEntarfer fudged the numbers to make him look bad.
Catch-up: It’s worth noting that Trump hasn’t always had an issue with the credibility of the data (at least when it’s been positive). The President celebrated a May report that estimated the economy added 139,000 jobs, posting: “GREAT JOB NUMBERS, STOCK MARKET UP BIG!”
Why it matters: By claiming the jobs numbers are rigged — and looking to fill the BSL with political allies — Trump is threatening the credibility of the data that underpins the pricing of trillions of dollars in assets globally.
Big picture: If U.S. economic data becomes politically compromised in the same way China and Greece’s numbers have been in the past, Canadian businesses and policymakers will no longer be able to rely on it to inform major decisions, especially when it comes to interest rates.—LA