On Sunday, former Treasury Secretary Larry Summers slammed President Donald Trump’s unfounded accusations stating that the head of the Bureau of Labor Statistics manipulated job numbers. He described such claims as “absurd.”
During an interview on “This Week” with George Stephanopoulos, Summers made it clear that no single individual could distort the report’s figures.
Summers explained, “These statistics are compiled by large teams of professionals, rigorously following established protocols. The chief of the BLS cannot possibly alter these numbers.”
He went on to say, “The figures align with various private sector reports. This is precisely what occurs in democracies succumbing to authoritarianism. Dismissing statisticians echoes threats against journalists and behavior toward academic institutions. It’s alarming.”
Following the release of disappointing job data on Friday and a downward revision of previous reports, Trump criticized Erika McEntarfer, the former BLS commissioner. He claimed he let her go for manipulating statistics for political gain, despite providing no proof to back this assertion.
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Commenting on Trump’s Twitter post, Summers noted, “That same Bureau of Labor Statistics wrongly inflated job growth in March 2024 by around 818,000, and again before the 2024 Presidential Election by 112,000 in August and September. Such mistakes seem unbelievable. We require true job statistics.”
Stephanopoulos posed the question, “Is the firing of the BLS commissioner surprising yet shocking?”
In response, Summers stated, “This surpasses the lengths Richard Nixon went to. I am astonished that other officials have not chosen to resign, as many did back when Nixon acted unlawfully.”
More: Trump’s long history of denouncing job report statistics dates back to 2016: AN ANALYSIS
Here are additional noteworthy moments from Summers’ chat
On Trump’s Critiques of Fed Chair Jerome Powell
Stephanopoulos: The president’s derogatory comments about Jerome Powell, the Federal Reserve’s chair, calling him a ‘moron’ for not lowering interest rates, adds to the unpredictability. What will this lead to?
Summers: Politically targeting the Fed is a foolish tactic. The Federal Reserve operates independently, so interest rates won’t change because of it. However, the market is affected; long-term rates may rise, making home purchasing pricier. This only damages the economy.
Summers noted that the president is recognizing, due to various factors including his policies, that the economy faces significant risks and seems to try to create a scapegoat for any potential downturn.
On Friday’s Job Outcomes and Interest Rate Cuts
Stephanopoulos: Friday’s jobs report seems to heighten the likelihood of the Fed cutting interest rates by September. What’s your assessment of the report?
Summers: The report suggests the economy could be approaching a perilous point. The data from July was weak, and more worrying are the revised downward figures from the previous two months. We’re potentially nearing a recession edge, which is a risk we can’t afford, emphasized by new tariffs.
It’s important to understand that these tariffs won’t create jobs. They might offer some temporary benefits for specific industries like steel but will put far more industries, such as automobile manufacturing, at a disadvantage. This inadvertently benefits our adversaries and harms our economy while raising costs for middle-class families.
On the Effects of Tariffs
Stephanopoulos: The markets seem unfazed by tariffs so far. Are we spotting any impacts in the recent jobs report?
Summers: Indeed, both the direct consequences of tariffs and the atmosphere of uncertainty play a role. Businesses don’t know who’s next to be targeted or what rules they must follow. In situations like this, companies tend to postpone hiring and postpone new investments. The initiatives that keep our economy alive aren’t rooted in the president’s policies.
