. Following President Trump's dismissal of the BLS commissioner after a disappointing jobs report, the pair explore the growing concerns regarding the credibility of U.S. economic data. With sharp downward revisions to payroll numbers for May and June, trust in these statistics is under scrutiny, leading to unease among investors on Wall Street.){kind=link}
“Last week’s jobs report really does change the narrative.” – 02:28
James Knightley, Senior International Economist at ING, joins Remy Blaire at the New York Stock Exchange to discuss the significant developments surrounding the U.S. economic landscape, particularly in light of recent actions taken by the White House and the implications for the Bureau of Labor Statistics (BLS). Following President Trump’s dismissal of the BLS commissioner after a disappointing jobs report, the pair explore the growing concerns regarding the credibility of U.S. economic data. With sharp downward revisions to payroll numbers for May and June, trust in these statistics is under scrutiny, leading to unease among investors on Wall Street.
James breaks down the ramifications of the recent jobs report, which has raised questions about the reliability of economic data moving forward. James highlights a shift in behavior since the pandemic, where respondents to data requests have become less reliable, resulting in lower quality data. He emphasizes that while politics plays a role, the primary concern lies in the data collection process itself.
James also delves into the latest GDP data, where he points out the importance of considering both the first and second quarters together to understand the underlying economic trends. He notes that while the headline GDP figure appears strong, domestic demand, particularly consumer spending, is showing signs of weakness, which could prompt the Fed to act sooner rather than later.