The Bureau of Labor Statistics (BLS), former President Biden, and Federal Reserve Chairman Powell are three common targets of attacks from Trump.
Written by: He Hao, Wall Street Insights
On Tuesday local time, after the U.S. government released significantly revised annual non-farm employment data, the White House quickly responded, criticizing Trump's three common targets: the Bureau of Labor Statistics (BLS), former President Biden, and Federal Reserve Chairman Powell.
White House Press Secretary Karoline Leavitt stated in a release:
Today, the BLS published the largest downward revision in history, proving that President Trump was right: Biden's economy is a mess, and the BLS has failed.
This is exactly why we need new leadership to restore trust and confidence in BLS data among financial markets, businesses, decision-makers, and families, as they rely on this data to make significant decisions.
Just as the BLS has let down the American people, so has Powell, who is now out of excuses and must cut interest rates immediately. The Federal Reserve needs to lower rates multiple times. The BLS annual revision of non-farm employment data released on September 9 indicates that the Federal Reserve needs new leadership.
The U.S. Department of Labor's report shows that in the year starting March 2024, the number of jobs created in the U.S. economy was less than initially reported. According to the BLS's preliminary report, the annual revision of non-farm employment data was reduced by 911,000 from the initial estimate.
U.S. Treasury Secretary Basant stated that he had warned last week that the BLS employment data would see a significant downward revision. Now that the official data is out, the employment increase for 2024 has been overstated by nearly 1 million, even after already reporting a downward revision of 577,000, which brings Biden's exaggeration of job growth to an astonishing 1.5 million.
Basant also pointed out that Trump's claim that "the Federal Reserve is stifling economic growth with high interest rates" is correct. The truth is that the economic situation Trump inherited was far worse than reported. The Federal Reserve should recalibrate interest rates. The Federal Reserve must regain its independence and stop serving the wealthy. In the U.S., the Federal Reserve is one of the main drivers of inequality.
U.S. Vice President Vance stated that it is necessary to take this opportunity to rebuild confidence in the BLS. The BLS data has become "useless."
U.S. Labor Secretary Chavez-Deremer stated that the data revision provides more reasons to question the BLS data and promised to modernize the data collection methods at the BLS, which did not improve during former President Biden's term.
Targets of Attack: BLS, Federal Reserve
Some media analyses point out that the BLS has become a target of a carefully orchestrated campaign by the White House to undermine public trust in its data.
In August, the BLS released the preliminary non-farm employment data for July, which included downward revisions to job growth for two months earlier this year. Hours later, Trump suddenly fired BLS Director Erika McEntarfer.
Trump argued that while these revisions are common in employment reports, they still indicate that the BLS is manipulating employment data for political purposes. His decision to fire McEntarfer drew strong criticism from economists and some lawmakers.
Powell was nominated as Federal Reserve Chairman by Trump in 2017. However, since the beginning of Trump's second term, Powell has frequently become a target of attacks from the White House, as Trump has grown increasingly dissatisfied with his refusal to cut interest rates. However, Powell stated in August that the uncertainty in the U.S. economy might make a rate cut later this month a reasonable choice.
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