A former chief of American economic statistics has expressed alarm that the administration moves could threaten the credibility of vital economic institutions.
Firing Viewed as Concerning Move
Erika McEntarfer, formerly the chief of the BLS, called her unexpected termination as “risky” and urged the public to pay attention to possible political interference in statistical reporting.
“Investors have to trust that the numbers are not biased,” she stated. “Dismissing top data officials for releasing data you don't like carries significant economic repercussions.”
Data Revision Preceded Termination
This agency oversees collecting and releasing key labor data. Back in August, it adjusted downward earlier job growth estimates for May and June by over 250,000. Shortly later, McEntarfer was fired.
This marked the initial time a current president has dismissed the head of the data agency, sparking alarm among economists about the long-term objectivity of the organization.
Proposed Candidate Raises Questions
Since the firing, the White House has nominated EJ Antoni, a scholar from a conservative thinktank and co-author to Project 2025, to run the bureau. Antoni has previously criticized the Bureau of Labor Statistics and yet to received approved by the Senate.
At present, a longtime staff member, William Wiatrowski, is serving as acting commissioner.
International Examples Highlight Danger
McEntarfer pointed out that countries such as Argentina, Greece, and Turkey have in the past faced similar political interference in economic data, resulting in eroded confidence, worse economic crises, elevated inflation, and increased borrowing costs.
“Messing with economic data is like messing with traffic signals,” she said. “Drivers don't know how to go, congestion gets worse. Nobody believes it’s beneficial for the nation.”
Funding Cuts and Modernization Efforts
Even her firing, McEntarfer had been pushing for updating the agency's information gathering systems. But, budget had dried up, particularly after alleged “efficiency” measures resulted in a 20% drop in employees.
She initially hoped that once certain changes in administration, the bureau could go back to “routine.” However, she ended up dismissed via a short message from the White House.
Closing Thoughts
She stressed that up to the moment she was fired, the numbers produced by the bureau were reliable and independent. Additionally, she voiced concern about the future of other economic bodies, including the Federal Reserve, which has likewise received criticism from the present administration.
“People should be able to live in a country where you don't know who the chief data official is,” she remarked.
