Trump Economic Adviser Discusses Firing of BLS Commissioner and Data Reliability

Rationale for BLS Commissioner's Firing

• 💡 Kevin Hassett explains the firing of the Bureau of Labor Statistics (BLS) commissioner was due to massive revisions in payroll data, particularly post-COVID.
• 🎯 The revisions have been larger than the reported numbers, leading to noisiness in labor market data, which is detrimental to markets and transparency.
• 🔑 A fresh set of eyes is needed at BLS to research and fix the unreliability and significant revisions in the jobs numbers.

Concerns Over Data Reliability and Revisions

• 📈 The magnitude of revisions in the last two months, outside of COVID years, is the largest seen since the 1970s.
• 📊 In an era with abundant data and advanced technology, it's puzzling that labor data has become noisier than in previous decades.
• ⚠️ Hassett acknowledges that large revisions can create suspicion of partisan bias, especially when correlated with political events.

President's Perspective vs. Academic Inquiry

• 🗣️ While Hassett outlines an academic concern about methodology, the president stated the data was politicized and intentionally manipulated.
• 🧐 Hassett notes that a political person might view revisions occurring after positive numbers as evidence of partisan bias.
• 🏛️ He draws a parallel to a past GDP number revision before an election, highlighting historical concerns about data manipulation.

Skepticism and President's Actions

• ❓ Senator Cynthia Lummis questioned the impetuousness of firing the statistician without first verifying data inaccuracy.
• 💬 Other economic advisers did not dispute the numbers themselves, but expressed dissatisfaction, which Hassett suggests could lead to the perception that the president acted because he disliked the numbers.
• 🧑‍💼 Hassett concludes that the president, like in other government areas, wants to appoint his own people to key positions, including this one.