U.S. President Trump nominated a long-time open critic of official economic data from the 'MAGA faction' to head the Bureau of Labor Statistics, intensifying concerns about the future political independence of the BLS and the credibility of its economic data.
On August 12, Trump announced via social media platform Truth Social that conservative economist EJ Antoni would become the new director of the U.S. Bureau of Labor Statistics (BLS). Trump wrote in the post, 'Our economy is booming, and E.J. will ensure the numbers released are honest and accurate.' This position requires Senate confirmation.
After the shocking July non-farm payroll report, Trump quickly fired former director Erika McEntarfer, accusing her, without evidence, of manipulating data for political purposes as appointed by former President Biden.
The integrity of BLS data is crucial for investors and policymakers. The recent employment report fundamentally changed the market's view of the labor market—from solid to nearly stagnant—and raised questions about the Federal Reserve's previous decision to maintain interest rates despite Trump’s pressure to cut them.
Today, a politically charged individual leads the BLS, which may further shake market confidence in U.S. core economic indicators.
A candidate strongly supported by Bannon with a clear political stance.
EJ Antoni is the chief economist at the conservative think tank Heritage Foundation, holds a PhD in economics, and is a highly influential figure in conservative circles, backed by Steve Bannon during Trump's first term. Reports indicate that Bannon referred to Antoni as 'the perfect person to lead the BLS at the perfect time.'
Antoni's political stance is clear, and he does not shy away from it. After the recent employment report was released, he was asked on Bannon's podcast whether the BLS was run by 'MAGA Republicans,' to which he replied, 'Unfortunately, no.' He added that this is partly why 'we continue to encounter various data issues.'
Additionally, Antoni is one of the contributors to the 'Project 2025' policy blueprint, which advocates for maximizing the proportion of politically appointed officials within the Department of Labor (the BLS's parent agency).
He is also a senior researcher at Unleash Prosperity, an organization whose leadership includes prominent figures such as Steve Forbes, Arthur Laffer, and Stephen Moore, and regularly provides policy advice to Trump.
The dismissal scandal that shook the reputation of the 'gold standard'.
Trump's public attacks on BLS data and personnel interventions began with the firing of McEntarfer.
On August 1, after the BLS released weak employment data, Trump swiftly fired her. The report revealed that the average job growth over the past three months was only 35,000, while the data for May and June was revised down by as much as 258,000, marking the largest downward revision since the pandemic.
Trump claimed these figures were 'manipulated' to embarrass him and Republicans. The BLS stated that data revisions are routine operations aimed at improving accuracy in the long term by incorporating more information and seasonal adjustments.
The decision to fire McEntarfer caused significant shockwaves within professional circles.
The term for the BLS director is four years, usually spanning both Republican and Democratic administrations to ensure continuity and independence in the work.
Even William Beach, McEntarfer's predecessor appointed by Trump, criticized the firing as 'destructive' and damaging to the credibility of the BLS. Following the incident, McEntarfer's deputy, William Wiatrowski, has been serving as acting director.
BLS may face significant reform.
Once appointed, Antoni plans to implement significant reforms at the BLS. He has called for a 'top-to-bottom' review of all the agency's data collection, processing, analysis, and publication processes and has stated that the BLS should publish more information on its website to enhance transparency.
Meanwhile, the Trump administration has proposed a broader institutional reform plan. Its 2026 budget proposal suggests transferring the BLS to the Department of Commerce, alongside other economic statistical agencies such as the Census Bureau and the Bureau of Economic Analysis. The proposal also plans to cut the BLS's budget and staffing, which would exacerbate the funding challenges the agency is already facing.
As the agency responsible for releasing key economic data such as employment and inflation in the United States, the BLS's output serves as the foundation for a range of business and policy decisions, from wage standards to adjustments of social security benefits.
Although it is part of the Department of Labor, it largely operates as an independent agency. Placing a publicly political ally in this key position puts its independence and the purity of its data under unprecedented scrutiny.