Nonfarm annual data significantly revised downward, Trump administration launches full-scale attacks on BLS, Biden, and Powell
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Nonfarm annual data significantly revised downward, Trump administration launches full-scale attacks on BLS, Biden, and Powell
The Bureau of Labor Statistics (BLS), former President Biden, and Federal Reserve Chair Powell are three common targets of Trump's attacks.
Navigating Web3 tides with focused insightsBy He Hao, Wall Street Insights
On Tuesday local time, following the U.S. government's release of significantly downward-revised annual nonfarm payroll data, the White House swiftly responded by attacking three frequent targets of President Trump: the Bureau of Labor Statistics (BLS), former President Biden, and Federal Reserve Chair Powell.
In a statement, White House Press Secretary Karoline Leavitt said:
Today’s BLS release—the largest downward revision in history—proves President Trump right: Biden’s economy was a disaster, and the BLS has failed.
This is precisely why we need new leadership to restore trust and confidence in BLS data among financial markets, businesses, policymakers, and households who rely on these figures for critical decisions.
Just as the BLS has let down the American people, so too has Powell, whose delay is indefensible. He must cut rates immediately. The Fed needs multiple rate cuts. The September 9 BLS nonfarm payroll revision shows the Fed needs new leadership.
A report from the U.S. Department of Labor showed that over the year beginning March 2024, the U.S. economy created fewer jobs than originally reported. According to preliminary BLS reports, the annual nonfarm employment revision reduced job gains by 911,000 compared to initial estimates.
U.S. Treasury Secretary Besent stated that he had warned last week the BLS employment data would see a significant downward revision. Now the official numbers confirm it—job growth in 2024 was overstated by nearly one million, on top of an already reported 577,000 reduction, making Biden’s exaggeration of employment growth a staggering 1.5 million.
Besent also pointed out that President Trump was correct in saying the "Fed is killing economic growth with high interest rates." The truth is, the economy Trump inherited was far worse than reported. The Fed must recalibrate interest rates. The Fed must regain its independence and stop serving the wealthy elite. In America, the Fed is one of the main drivers of inequality.
U.S. Vice President Vance said there is now an opportunity to rebuild confidence in the BLS, whose data has become "useless."
U.S. Labor Secretary Chavez-Deremer said the data revisions provide further grounds for questioning BLS figures, pledging to modernize data collection methods at the BLS, which failed to improve data citation practices during former President Biden’s term.
Targets: BLS, Federal Reserve
Media analysis suggests the BLS has become a target in a White House-led campaign to deliberately undermine public trust in its data.
In August, the BLS released preliminary July nonfarm payroll figures, including downward revisions for two earlier months. Hours later, Trump abruptly fired BLS Commissioner Erika McEntarfer.
Trump argued that although such revisions are common in employment reports, they still indicate the BLS manipulated job data for political purposes. His firing of McEntarfer drew strong criticism from economists and some lawmakers.
Powell was nominated by Trump in 2017 to lead the Federal Reserve. But since the start of Trump’s second term, Powell has frequently come under attack from the White House due to Trump’s growing frustration with his refusal to cut rates. However, Powell stated in August that uncertainty in the U.S. economy might make a rate cut later this month a reasonable option.
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