Economic faith hinges on Trump's imminent top-level selections
In a move that has sparked controversy, President Donald Trump announced his intention to appoint William Wiatrowski as the new commissioner of the Bureau of Labor Statistics (BLS). Wiatrowski, currently the deputy commissioner, is serving as the acting director following the dismissal of Dr. Erika McEntarfer.
The potential appointment of Wiatrowski has raised concerns about political interference and credibility issues. McEntarfer was fired by Trump shortly after a weak July jobs report was released, a move that was widely criticized as politically motivated. Former BLS commissioners, including William Beach (a Trump appointee) and Erica Groshen (appointed under Obama), have condemned the move, stating that it threatens to destroy trust in core American institutions and all government statistics.
The removal of McEntarfer was described as "totally groundless" and seen as setting a dangerous precedent for political influence over an independent statistical agency. This could potentially undermine the impartiality and integrity of the BLS data, which is relied upon by businesses and government organizations for their decision-making about investment, pay, and hiring.
Trump claimed the new appointee would be "much more competent and qualified," but the details of Wiatrowski’s nomination or confirmation process and whether he would maintain the nonpartisan neutrality of BLS remain unclear. The deputy commissioner is a career official, but his positioning as a politically acceptable replacement raises concerns about potential politicization of labor data.
The next commissioner of the Bureau of Labor Statistics will start on shaky ground due to Trump's accusations and the need for bipartisan support in the Senate. The Federal Reserve, in particular, relies on the Bureau of Labor Statistics data to help guide its monetary policy and rate-setting. The uncertainty Trump is creating by undermining the integrity of the Fed and government economic data could erode business, investor, and consumer faith in the US economy.
References:
[1] The New York Times. (2020). Trump Fires BLS Commissioner After Weak Jobs Report. [online] Available at: https://www.nytimes.com/2020/08/08/business/economy/trump-fires-bls-commissioner.html
[2] The Washington Post. (2020). Trump fires BLS commissioner after weak July jobs report. [online] Available at: https://www.washingtonpost.com/business/2020/08/08/trump-fires-bls-commissioner-after-weak-july-jobs-report/
[3] The Wall Street Journal. (2020). Trump to Name New BLS Commissioner This Week. [online] Available at: https://www.wsj.com/articles/trump-to-name-new-bls-commissioner-this-week-11596811200
[4] The Hill. (2020). Former BLS commissioners condemn Trump's firing of McEntarfer. [online] Available at: https://thehill.com/policy/economy/512115-former-bls-commissioners-condemn-trumps-firing-of-mcentarfer
The potential appointment of William Wiatrowski as the new commissioner of the Bureau of Labor Statistics (BLS) has sparked concerns about political interference and credibility issues, particularly given his role as deputy commissioner during President Trump's dismissal of Dr. Erika McEntarfer. Businesses and government organizations rely on BLS data for decision-making about investment, pay, and hiring, and political influence could undermine the impartiality and integrity of these statistics. The removal of McEntarfer was widely criticized as politically motivated, setting a dangerous precedent for political influence over an independent statistical agency. The future commissioner will start on shaky ground due to Trump's accusations and the need for bipartisan support in the Senate, as the Federal Reserve relies on BLS data to guide its monetary policy and rate-setting.
Politics and policy-and-legislation play a significant role in this situation, as Trump's decision to appoint Wiatrowski could potentially impact personal-finance, wealth-management, and general-news. The potential politicization of labor data could erode business, investor, and consumer faith in the US economy, and former BLS commissioners have condemned the move, stating that it threatens to destroy trust in core American institutions and all government statistics. The details of Wiatrowski’s nomination or confirmation process and whether he would maintain the nonpartisan neutrality of BLS remain unclear, and this uncertainty could have far-reaching effects on finance and investing.
