On the first Friday of August 2025, two bombshells exploded in American politics: Trump suddenly fired a senior Labor Department official, accusing him of fabricating data. On the same day, a Federal Reserve board member abruptly resigned, creating an opportune opportunity for him to reshuffle the system. This political storm, triggered by the employment data, is shaking global trust in the US economic statistics system.

1. "Data Wars" Erupt: Inside Story of Trump's Firing of Statistics Officials

In the early morning hours of August 2nd, Trump posted three all-capital tweets on the social media platform Truth, directly targeting the Bureau of Labor Statistics' July jobs report. This "disastrous report," which showed only 73,000 new jobs and a downward revision of 258,000 jobs for the previous two months, was characterized by Trump as a "political conspiracy by Biden's remnants."

Without presenting any evidence, Trump signed a dismissal order on the spot, firing Erika McEntarfer, the chief economist of the Labor Department appointed by Biden during the administration. This technocrat, who often questioned the extent of data revisions in internal meetings, became the first official in U.S. history to be publicly dismissed by the president over statistical results.

It's worth noting that this turmoil lurks a deeper crisis. According to anonymous White House officials, the response rate for surveys covering key economic data has remained below 50% since the outbreak began, forcing a 30% reduction in the scope of CPI data collection. As a former Department of Labor official privately lamented, "We're painting a complete picture of the U.S. economy with incomplete pieces."

2. The Fed's "Game of Thrones" plays out early: Kugler's resignation sparks speculation about his successor.

While the market was still digesting the shock of the jobs data, Federal Reserve Board Governor Kugler's sudden resignation delivered another bombshell. The economist, who was due to serve until 2026, vaguely cited "personal reasons" in her resignation letter, creating a golden window for Trump to rewrite the Fed's power structure.

Sources familiar with the matter revealed that the Trump administration has already drawn up a list of candidates for Fed reform. At the top of the list is Hassett, his economic advisor—a "Trumpian economist" who advocates for zero interest rates. If he were to join the Fed, he would pose a direct threat to Powell's presidency. Even more intriguing is Treasury Secretary Bensont's recent frequent private meetings with regional Fed presidents, which is being interpreted by some as a sign of "preemptive action."

3. Double Storm Impacts Global Markets: Dow Jones Industrial Average Drops 800 Points in a Single Day

Political uncertainty compounded by a crisis of confidence in data ushered in a "Black Friday" on Wall Street. The S&P 500 plummeted 1.6%, its biggest drop in two months, and the Treasury yield curve inverted—this bizarre market reaction revealed investors' deep skepticism about traditional economic indicators.

"When statistical agencies become political bullseyes, what can we trust?" JPMorgan analysts posed a soul-searching question in an urgent report. More seriously, EU and G7 finance ministers have asked their own agencies to "reassess the risks of citing US data." This means that the US statistical system, which has served as a global economic benchmark for eight decades, is facing an unprecedented crisis of international trust.

Summary: A dangerous game with no winners

The Roosevelt Institute's warning is deafening: "When politics interferes with statistics, it's like a doctor tampering with a physical examination report." Trump's drastic measures may result in more "beautiful" economic data, but the price he pays may be the core credit foundation of the US dollar hegemony.