US President Donald Trump asked for a dismissal of a statistics on Friday after the publication of employment figures showing a clear degradation of working market conditions in recent months.
“I have just learned that the” employment figures “of our country are made by a person appointed by Joe Biden, Dr. Erika MCENTARFER, (…) who has rigged employment figures before the election to increase the chances of victory of Kamala” (Harris, his rival in the last presidential election), says the head of state on his social social platform.
“I asked my team to return this person appointed by Biden, immediately. She will be replaced by someone much more competent and qualified, “he added.
He continues by saying that “important figures must be fair and exact, they cannot be manipulated for political purposes”.
Friday morning, the monthly report on employment in the United States surprised a darker table than expected of the labor market state, at a time when experts predict a slowdown under the effect of Donald Trump’s customs offensive.
The world’s leading economy created 73,000 jobs in July, according to the document published by the Ministry of Labor. “A shock!” Donald Trump commented in his message.
Above all, the number of jobs supposed to have been created during the months of May and June was strongly revised downwards. The corrected figures (19,000 in May and 14,000 in June) are displayed at the lowest since the Pandemic of Cavid-19.
The corrections are “much superior to normal”, it is noted in the report. 258,000 job creations have evaporated statistics over these two months.
The unemployment rate increased slightly to 4.2%, compared to 4.1% in June.
Dissessions to the Fed
The American executive continues to assert that the economy is roaring, while insistently calling for the Federal Reserve (Fed), the United States Central Bank, to support it more by reducing interest rates.
“The economy fads under” Trump “despite the Fed which also plays a game, this time with interest rates,” said Donald Trump on Friday.
Earlier in the week, the federal reserve still preferred to leave its rates unchanged. It was the fifth time in a row, in as many meetings since the return to power of Donald Trump.
The decision was marked by the rare opposition of two governors, who pleaded for rate decreases to support activity and the labor market. They published press releases exposing their position on Friday, just before the publication of employment figures.
A drop in rates would have “protected preventively” the economy and the labor market, argues governor Michelle Bowman there. His colleague Christopher Waller considers that the wait -and -see approach to the Fed is “excessively cautious”.
New deal
Analysts were surprised by the magnitude of the corrections in the employment report, without questioning the reality of the new figures.
This report “changes the situation” by showing that “the labor market is deteriorating rapidly”, according to the economist of the Bank Navy Federal Credit Union, Heather Long.
The United States has “created only 35,000 jobs on average in the past three months,” she said, adding that the federal reserve was “seriously considering a drop in rates in September” to support the economy.
Investor projections on the future level of the central bank’s guiding rates immediately changed after the report was published. There are more many of them betting on a drop in rates at the September meeting, which lowered the borrowing rates of the federal state and the dollar.
Heather Long considers that it becomes urgent to remove the uncertainties surrounding the government’s protectionist offensive: “The more this price instability will last, the more this low recruitment context may transform into layoffs.”
According to Jamie Cox, of the Harris Financial group, the president of Fed Jerome “Powell will regret having left the rates unchanged this week”. The Fed, he adds, “will have to lower the rates in September and it could be half a point at once to make up for lost time”.