Former Employment Statistics Chief Sounds Alarm About Administration Interference with Economic Data
The ex- head of American economic data has warned that recent administration actions may threaten the credibility of vital government institutions.
Dismissal Seen as Dangerous Precedent
Erika McEntarfer, formerly the chief of the Bureau of Labor Statistics, described her abrupt termination as “dangerous” and encouraged the American people to pay attention to potential partisan interference in statistical data releases.
“Investors have to trust that the data aren't altered,” McEntarfer said. “Removing top data officials for releasing data you don't like has serious financial repercussions.”
Statistics Revision Preceded Termination
This agency is responsible for collecting and publishing critical economic data. In August, it adjusted lower earlier employment growth estimates for May and June by more than 250,000. Hours after, McEntarfer was fired.
It was the initial time a sitting commander-in-chief has dismissed the head of the data agency, raising alarm among economists about the long-term neutrality of the organization.
New Candidate Creates Questions
Since the dismissal, the White House has nominated EJ Antoni, an economist affiliated with a right-leaning policy institute and contributor to Project 2025, to run the agency. Antoni has in the past questioned the BLS and has not received approved by Congress.
At present, an experienced official, William Wiatrowski, is acting as interim head.
Global Examples Highlight Risk
McEntarfer pointed out that countries such as Argentina, Greece, and Turkey have previously experienced comparable political meddling in economic reporting, resulting in loss of trust, deepened economic downturns, elevated prices, and increased borrowing rates.
“Messing with economic statistics is like messing with traffic signals,” McEntarfer explained. “Drivers don't know how to go, congestion backs up. No one believes it’s good for the country.”
Budget Reductions and Updates Plans
Prior to her firing, McEntarfer had been advocating updating the agency's data gathering systems. But, budget was reduced, particularly after alleged “efficiency” policies led to a 20% drop in employees.
She initially expected that after certain changes in administration, the agency could go back to “normalcy.” Instead, she was dismissed via a brief message from the administration.
Final Thoughts
She stressed that until the moment she was let go, the data released by the agency were accurate and free from influence. She also expressed concern about the direction of additional key institutions, including the central bank, which has likewise faced criticism from the current government.
“People ought to be able to live in a country where you don't know who the head statistician is,” McEntarfer remarked.
