Trump to replace Fed, labour chief amid row over jobs data, rate policy

After firing Bureau of Labour Statistics chief McEntarfer over weak jobs data and criticising Fed chair Powell, Trump signals new key appointments

US President Donald Trump said on Sunday (local time) he would soon appoint new heads for the Federal Reserve and the Bureau of Labour Statistics (BLS), escalating a political row over jobs data and interest rate policy.

 

The announcements follow the surprise resignation of Fed governor Adriana Kugler and the abrupt dismissal of BLS Commissioner Erika McEntarfer over allegedly “rigged” jobs data.

 

What’s the latest

 

Trump confirmed he had “a couple of people in mind” for the Fed vacancy, while sharply criticising both outgoing officials. Speaking to reporters while returning from his Bedminster weekend, he suggested replacements would be named “very soon”.

 

 

The appointments come as Trump ramps up criticism of Federal Reserve Chair Jerome Powell, blaming him for keeping interest rates high and accusing him of being “too angry, too stupid, and too political.”

 

Trump has previously demanded Powell’s resignation and is expected to name a successor aligned with his push for lower interest rates when Powell’s term ends in May. 

 

Fed vacancy after Kugler resignation

 

Adriana Kugler’s early departure from the Federal Reserve Board—months before her term expiry in January—opens a critical seat. Trump is expected to use the vacancy to further shape Fed policy in line with his economic agenda.

 

Reported contenders include:

 

Kevin Hassett, Director of the National Economic Council

Kevin Warsh, former Fed governor

Christopher Waller, current Fed governor

Scott Bessent, Treasury Secretary

 

BLS chief McEntarfer fired over weak data

 

The political fallout intensified after Trump abruptly fired BLS Commissioner Erika McEntarfer. Her dismissal followed a disappointing jobs report that showed job growth had slowed sharply over three months.

 

In a post on Truth Social, Trump called McEntarfer a “Biden political appointee”, alleging she had "rigged" data to harm Republican prospects and had done so in the past by inflating job numbers before elections, only to revise them down later.

 

Critics warn of politicisation

 

The firing drew strong criticism from economists and former officials. William Beach, who led the BLS during Trump’s first term, told CNN the decision was unjustified.

 

“This is damaging,” Beach said, according to Bloomberg. “The BLS is the finest statistical agency in the entire world.” He added that its staff are deeply professional and loyal to accurate reporting.

 

Beach noted that jobs data are routinely revised for accuracy and have become more reliable over the past two decades—a practice unrelated to political manipulation.