President Donald Trump has dismissed the head of the agency responsible for publishing key economic data, following a disappointing jobs report that added to growing concerns over the administration’s aggressive tariff strategy.
Announcing the firing on social media, Trump claimed—without offering evidence—that the commissioner had manipulated job numbers for political reasons. The move surprised financial markets and raised questions about potential political interference in the nation’s economic reporting.
In her farewell message, the commissioner described her time in office as “the honor of my life” and emphasized the importance of the agency’s work.
The firing came just as global stock markets reacted sharply to Trump’s decision to increase tariffs on a wide range of goods. Major U.S. indexes fell, with the S&P 500 closing down by 1.6%, mirroring earlier drops in European and Asian markets.
The dismissed commissioner had been in public service for over two decades and was widely seen as a respected figure. She was appointed to lead the agency in 2023 and was confirmed with broad support.
The White House justified the decision by pointing to newly revised job data, which revealed that U.S. employers added only 73,000 jobs in July—a figure significantly below expectations. In addition, prior estimates for May and June were lowered by a combined 250,000 jobs. Trump cited these revisions as a key reason for the dismissal, asserting a need for “accurate jobs numbers.”
The Labor Department has since named the agency’s deputy commissioner as acting head while a search for a permanent replacement begins.
Typically, job numbers are adjusted each month as more information becomes available. While this month’s revisions were unusually large, they were in line with broader signals pointing to a cooling labor market. Some experts believe the slowdown could be hitting smaller businesses hardest—especially as they face the brunt of rising tariff-related costs.
Despite growing skepticism around the administration’s trade policies, Trump continues to insist the tariffs will rejuvenate domestic manufacturing and correct global trade imbalances. However, new economic data and reports from businesses paint a more challenging picture.
Markets have been particularly sensitive to these developments. After opening lower on Friday, U.S. stock indexes saw deeper losses throughout the day. The Dow fell 1.2%, the Nasdaq dropped 2.2%, and the S&P lost 1.6%. Major indexes across Europe and Asia also registered sharp declines.
The latest round of tariffs raises the average rate to roughly 17%, up from less than 2.5% at the beginning of the year. Though less severe than earlier proposals, the move has still rattled investors, especially given past market rebounds that may have emboldened the White House to push ahead with further trade measures.
Adding to the tension, Trump renewed his criticism of the Federal Reserve, accusing the central bank’s leadership of being too slow to reduce borrowing costs. Later in the day, a member of the interest rate-setting committee announced plans to resign, giving Trump another chance to influence the Fed’s direction.
Asked about the controversial firing, Trump defended the decision, stating it was necessary to ensure trustworthy leadership in vital roles. “I believe the numbers were phony,” he said. “So you know what I did? I fired her. And it was the right thing to do.”
As the economic and political fallout continues to unfold, concerns persist about the long-term impact of politicizing official data and the broader effects of the administration’s trade policies on both domestic stability and global markets.