Trump fires top labor official after weak jobs report

President Donald Trump on August 1 abruptly fired a senior Labor Department official following the release of a disappointing U.S. jobs report that sent shockwaves through financial markets. The president accused the official, without providing evidence, of manipulating employment data. 

In a separate surprise development later that day, Federal Reserve Governor Adriana Kugler announced her resignation, unexpectedly giving Trump an opportunity to further shape the central bank’s leadership, with which he has frequently clashed over interest rate policy, Caliber.Az reports, citing Reuters. 

The twin events added to the turmoil in financial markets already rattled by Trump’s recent tariff threats and the worse-than-expected jobs figures. The S&P 500 Index (.SPX) dropped 1.6%, marking its steepest daily decline in over two months.

Trump targeted Erika McEntarfer, a top official at the Bureau of Labor Statistics (BLS) appointed during the Biden administration, alleging that she falsified job numbers. However, no evidence has been presented to support the president’s claims, and the BLS — which is responsible for compiling employment, consumer, and producer price data — has not commented publicly on the allegations.

“We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified,” Trump said in a post on Truth Social.

The day began with the BLS reporting that the U.S. economy added just 73,000 jobs in July — a figure that fell far short of expectations. More significantly, the agency revised job growth figures for May and June downward by a combined 258,000 positions.

McEntarfer’s removal and the sudden vacancy at the Federal Reserve come at a time of heightened volatility in the U.S. economy, potentially deepening uncertainty over future economic policy and the independence of key institutions.

By Sabina Mammadli