President Donald Trump has announced plans to fill two key leadership positions with significant oversight of the US economy, sparking concerns over the credibility of the Bureau of Labor Statistics (BLS) and the Federal Reserve Board of Governors.
Trump has fired Dr. Erika McEntarfer, the BLS commissioner, and plans to name a replacement within days. The new commissioner will be responsible for delivering reliable economic data, which is crucial for businesses, employers, and government agencies making key investment and hiring decisions.
Critics argue that Trump’s accusations against McEntarfer may have already damaged the credibility of the BLS, risking confidence in the US economy. Economists say that the recent revisions to jobs data can be explained by low response rates to surveys and jobs growth below expectations.
The upcoming appointment of a new Fed governor will also have significant implications for interest rate decisions and the central bank’s monetary policy. Trump has threatened to fire and replace Jerome Powell, but now sees an opportunity to nominate someone who favors large-scale and immediate interest rate cuts.
The uncertainty surrounding these appointments could erode business, investor, and consumer faith in the US economy, potentially undermining Trump’s goal of lowering interest rates. The president’s consistent interference in the Fed’s policymaking has already thrust the next Fed governor into an uncomfortable position, raising concerns over the independence of the central bank.
Experts warn that a lack of trustworthy data could drive investors out of US Treasuries, sending bond yields higher and increasing the cost of living for Americans. The appointment of a new BLS commissioner who is seen as impartial will be crucial in restoring confidence in government economic data.
Source: https://edition.cnn.com/2025/08/05/business/appointments-bls-fed-trump