On the US exchanges, the weak labor market numbers and the dismissal of Mcentarfer provided turbulence. There are therefore a few indices on Friday. “In addition, everyone is quite shocked by how much the numbers were corrected down for May and June,” said Kevin Gordon, chief strategist at the financial service provider Charles Schwab.
Market analyst Steve Sosnick from Interactive Brokers said that the numbers recently had corrections very large. “But I also think that it is really unprecedented that a president simply fires someone because of numbers who do not like without really trying to investigate the reasons.” That is not a good sign. “If the people who collect the data are subject to the political mood of the President, this can question the truth content of this data.”
The democratic Senator Ron Wyden from the US state of Oregon sees it similarly. “The bottom line is that Trump is ready to have the numbers manipulated.” He called the dismissal at the head of the authority the act of someone who “is weak and is afraid of admitting the chaos he has done with his economic policy”.
Minister of Labor Lori Chavez-Deremer announced that Mcentarfer’s previous deputy, William Wiatrowski, would take the place as BLS boss until further notice was found until a permanent succession plan was found.
In addition, another message on Friday caused turbulence in the United States. According to this, the US Federal Reserve also announced that its governor Adriana Kugler would already vacate her post on August 8th and not only at the end of January 2026. As a professor, the economist wants to return to the Georgetown University in Washington.
Kugler had repeatedly refused to reduce the key interest rate reduction required by Trump. She had always voted for the maintenance of the key interest – two board members appointed by Trump for the first time in the past vote spoke in favor of a reduction. An unusual process in the committee, which otherwise always decides unanimously. The President then certified the FED “strong differences of opinion”, which would “only become stronger”. Trump said “very happy” about journalists.
This gives Trump the opportunity to select a successor according to his taste and thus put even more pressure on Fed boss Jerome Powell. Trump has accused Powell almost daily and partly with attacks under the belt line to keep interest rates too high.
The news of the withdrawal of Kugler also caused a bad mood on the stock exchanges shortly before the closure of the trade. The dollar index lost around 1.2 percent. Dealers had repeatedly been concerned that Trump could interfere too much into the monetary policy of the independent Fed. This is concerned that Trump’s customs policy could heat inflation in the coming months. Whether the Fed will reduce interest in September could now depend on the next labor market report for August.
