Key Takeaways
- President Trump dismissed Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer just hours after a significantly weaker-than-expected July jobs report, sparking widespread concerns over the integrity and politicization of U.S. economic data. The report showed only 73,000 nonfarm jobs added in July, far below estimates, and a downward revision of 258,000 jobs for May and June.
- A YouGov survey indicates that a majority of Americans believe tariffs hurt U.S. consumers, with only 22% blaming foreign manufacturers, directly contradicting a key tenet of the Trump administration's trade policy.
- Tesla (TSLA) has been ordered to pay $243 million in damages following a fatal Autopilot crash, raising significant questions about the liability and safety of autonomous driving technology.
- Federal Reserve officials, including Neel Kashkari and John Williams, acknowledge a softening labor market but maintain an "open mind" regarding future monetary policy decisions, emphasizing data dependency.
- Berkshire Hathaway (BRK.A, BRK.B) and Warren Buffett disclosed an insider transaction in VeriSign (VRSN) stock, selling approximately one-third of their stake for $1.23 billion to reduce their ownership below the 10% regulatory threshold.
President Donald Trump initiated significant market and political ripples by firing Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer following a disappointing July jobs report. The report revealed a meager 73,000 nonfarm jobs added in July, significantly missing expectations, and included a substantial downward revision of 258,000 jobs for May and June. This abrupt dismissal, coupled with Trump's unsubstantiated claims of data manipulation, has raised alarms among economists and lawmakers about the independence and credibility of federal economic statistics. Critics, including former BLS Commissioner William Beach, warn that this action sets a "dangerous precedent" and undermines the statistical mission of the Bureau. The weak jobs figures, alongside new U.S. tariffs, contributed to a market sell-off, with the Dow Jones Industrial Average losing 542 points (1.2%), the S&P 500 falling 1.6%, and the Nasdaq composite dropping 2.2%.
The administration's trade policies are also under scrutiny, as a YouGov survey indicates that a majority of Americans believe tariffs are detrimental to U.S. consumers. Only 22% of respondents attributed the negative impact to foreign manufacturers, challenging the narrative that other countries bear the cost of these duties. Trump's global tariff push has already raised average U.S. import duties, with some countries facing rates as high as 41%, and Canada seeing an increase from 25% to 35%. Economists warn that these tariffs could lead to higher consumer prices and increased factory costs, with analyses suggesting a potential rise of 2% to 4.5% in manufacturing expenses.
In other significant developments, Tesla (TSLA) has been ordered to pay $243 million in damages following a fatal Autopilot crash. This ruling underscores the ongoing legal challenges and safety concerns surrounding advanced driver-assistance systems.
Federal Reserve officials are closely monitoring economic data amidst these shifts. Minneapolis Fed President Neel Kashkari noted that the labor market is "softening gently" and that both BLS data and private sector data are telling the same story. He also stated that he is "not surprised to see the labor market slowing" and that future decisions will be guided by the "best available data." Similarly, New York Fed President John Williams stated that the labor market remains strong and that he will approach the September FOMC meeting with an "open mind." Despite Trump's repeated criticisms of Fed Chair Jerome Powell and calls for lower interest rates, Trump has indicated that firing Powell "would disturb the market" and that Powell will "most likely" stay on as chair until his term ends in May 2026, at which point Trump intends to appoint a new Fed Chair.
Finally, Berkshire Hathaway (BRK.A, BRK.B) and Warren Buffett have disclosed an insider transaction in VeriSign (VRSN) stock. The conglomerate sold approximately one-third of its stake, totaling 4.3 million shares at $285 each, generating $1.23 billion. This move was primarily driven by the intention to reduce Berkshire's ownership below the 10% threshold, which triggers additional regulatory obligations with the U.S. SEC. Despite the sale, Berkshire's investment in VeriSign, which began in 2012, has yielded over fivefold returns.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.