Trump Fires Labor Official, Alleges Jobs Data Manipulation Amid Fed Shake-Up

WASHINGTON/NEW YORK, August 1, 2025 (CSB News USA):

President Donald Trump on Friday abruptly fired a senior U.S. Labor Department official following the release of a disappointing jobs report, which he claimed — without presenting any evidence — had been deliberately manipulated to damage his administration. The move has intensified scrutiny over the reliability of federal economic data and triggered fresh concerns among economists and policy experts.

In a post on Truth Social, Trump accused the now-dismissed Labor Department official of "rigging the numbers" and delivering "fake data" to the public. “They’re trying to hurt our momentum,” Trump wrote. “This was a deliberate sabotage of confidence in our economy.”

The labor data in question showed unexpected weakness in job creation, sending shockwaves through financial markets and leading analysts to speculate about the health of the U.S. economy just months before the presidential election.

While the Trump administration has yet to name a replacement for the ousted official, the firing comes amid already mounting concerns over the politicization of federal agencies. Several independent economists have warned in recent months about declining transparency and methodological shifts in data reporting.

Adding to Friday’s drama, Federal Reserve Governor Adriana Kugler announced her resignation, providing Trump with an earlier-than-expected opportunity to reshape the central bank. The resignation was unexpected and immediately fueled speculation about Trump's influence over the future direction of U.S. monetary policy.

The Fed, which has frequently been at odds with Trump over interest rates, may now be more vulnerable to political pressure. Kugler’s departure marks a critical opening for Trump to nominate a more dovish replacement — someone potentially more aligned with his calls for aggressive rate cuts to boost economic growth in the lead-up to the election.

Markets reacted swiftly to the developments. U.S. Treasury yields fell, and major stock indices posted moderate losses amid fears of further political interference in economic institutions.

“It’s a concerning moment,” said Sarah Connors, an economist at Brookings. “Not only are we seeing unfounded accusations against career officials, but now we’re witnessing the president take aim at the central bank just as key data starts to turn.”

Analysts note that this dual shake-up — at both the Labor Department and the Federal Reserve — could lead to a broader erosion of trust in U.S. institutions tasked with providing objective economic analysis and policymaking.

While the White House has remained tight-lipped about who will be nominated to replace Kugler, Trump’s advisors have hinted at considering candidates who support looser monetary policy and lower rates. The selection process will be closely watched by Wall Street, global investors, and Trump’s political opponents alike.

Meanwhile, the Labor Department has defended the integrity of its data. A spokesperson stated that all jobs figures were calculated using standard statistical methods and without political input.

Trump’s dual moves on Friday — firing a top labor official and gaining a new Fed appointment opportunity — underscore how economic policy and political strategy are becoming increasingly intertwined in the final stretch before the 2025 election.