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2025-08-02 08:53:44
[Federal Reserve Personnel Shakeup, Data Rashomon Triggering Market Panic?] ⑴ Trump posted on social media, accusing the jobs data of being manipulated. ⑵ He subsequently fired a senior Labor Department official responsible for compiling the jobs report. ⑶ This move heightened concerns about the accuracy of federal government economic data. ⑷ Reports also indicate that Fed Governor Kugler unexpectedly resigned, providing Trump with an opportunity to prematurely reshape the Fed. ⑸ Kugler's resignation gave Trump an earlier-than-expected opportunity to appoint new Fed officials. ⑹ These two pieces of news, combined with Trump's newly announced tariffs, caused stock market volatility. ⑺ The S&P 500 fell 1.6%, its biggest single-day drop in more than two months. ⑻ Trump claimed the need for "accurate" jobs figures and accused officials appointed by the previous administration of fabricating the data. ⑼ However, there is currently no evidence to support Trump's claim of data manipulation. ⑽ Anonymous officials revealed that the White House expressed dissatisfaction with the recent significant revisions to data and the low survey response rate. ⑾ Some economists believe that politicizing economic statistics is a self-destructive act. ⑿ These two developments have brought uncertainty to the market, further exacerbating traders' risk aversion.
