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A ex- director of US economic statistics has now cautioned that the White House actions may weaken the credibility of key government agencies.

Dismissal Seen as Risky Precedent

Erika McEntarfer, who was the commissioner of the Bureau of Labor Statistics, labeled her abrupt termination as “dangerous” and urged the American people to pay attention to potential partisan interference in economic reporting.

“Economies must trust that the data are not manipulated,” McEntarfer said. “Dismissing top data officials for publishing numbers you don't like has serious financial repercussions.”

Data Revision Came Before Termination

The bureau oversees collecting and publishing key labor data. Back in August, it revised lower initial job growth estimates for May and June by over 250,000. Shortly later, she was dismissed.

It was the first instance a sitting president has dismissed the leader of the statistics agency, raising concern among economists regarding the long-term objectivity of the organization.

Proposed Candidate Creates Questions

Following the firing, the White House has nominated EJ Antoni, an economist from a conservative policy institute and co-author to a conservative agenda, to run the agency. He has in the past criticized the Bureau of Labor Statistics and has not been approved by the Senate.

At present, an experienced official, William Wiatrowski, is serving as acting head.

Global Examples Highlight Risk

McEntarfer noted that countries like Argentina, Greece, and Turkey had previously faced comparable government meddling in economic data, resulting in eroded confidence, deepened economic crises, higher prices, and higher borrowing costs.

“Messing with official statistics is like messing with street lights,” McEntarfer explained. “Cars won't know where to go, congestion backs up. No one believes it’s good for the nation.”

Funding Cuts and Modernization Efforts

Prior to her firing, McEntarfer was pushing for updating the agency's data gathering systems. However, budget had reduced, especially after so-called “cost-cutting” policies resulted in a 20% drop in employees.

She initially expected that after certain changes in leadership, the agency could return to “normalcy.” Instead, she ended up fired via a short message from the White House.

Closing Remarks

She reiterated that up to the point she was let go, the data released by the agency were accurate and independent. Additionally, she expressed unease about the direction of other key institutions, including the central bank, which has likewise faced criticism from the current government.

“People ought to be able to live in a country where you don't know who the chief data official is,” she remarked.