Former Treasury Secretary Larry Summers criticized President Donald Trump’s accusation that the top Bureau of Labor Statistics official manipulated jobs report numbers without providing evidence. In an interview with “This Week” anchor George Stephanopoulos, Summers stated that one official would not be able to change the numbers and that the numbers are in line with what we’re seeing from private sector sources. Trump blasted Erika McEntarfer, the now-former commissioner of Labor Statistics, after the release of disappointing jobs numbers on Friday and the revision downward of previous months’ reports.
Summers argued that this kind of political Fed-bashing is a fool’s game, as the market does listen, and longer-term interest rates will be higher, making it more expensive to buy a house. He also noted that the president’s campaign against Fed Chair Jerome Powell, calling him a’moron,’ is not about trying to change policy but rather recognizing that the economy has a lot of risk.
The jobs report on Friday likely increased the chances that the Fed will cut interest rates in September. Summers argued that the economy is closer to stall speed than we thought it was, and that tariffs are not job creators. He also highlighted the potential impacts of tariffs on the economy, such as increased bills for middle-class families.
