Trump fires lead official on economic data as tariffs cause market drop

Aug 02, 2025
BBC News
Trump fires lead official on economic data as tariffs cause market drop
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Trump fires lead official on economic data as tariffs cause market drop

42-minute outage sparks concerns over US tech security

The move comes as markets dropped significantly on the news of rising tariffs. The resignation of the lead official on economic data, David Malpass, has raised concerns about the potential impact on economic data transparency. While the president has dismissed concerns, analysts insist on the importance of these figures in shaping market expectations. The White House has not yet commented on the official's dismissal.

The significance of economic data

Economic data transparency provides valuable insights into the health and stability of a nation's economy. It encompasses various critical indicators, including GDP growth, employment and unemployment rates, inflation, and retail sales. These metrics offer a holistic view of economic performance, guiding decision-making among businesses and governments and influencing market expectations. Analyzing and interpreting this data is crucial for assessing economic trends, identifying potential risks, and formulating sustainable growth strategies. Therefore, ensuring the accuracy and integrity of economic data is paramount in fostering confidence and stability within economies and financial markets.

Market reaction

The news sparked a significant market reaction, with stocks plunging and investors fleeing to safer assets. The declines were led by technology companies, which tend to rely on cheap debt to fuel growth and are vulnerable to interest rate hikes. Banks, on the other hand, tend to benefit from higher rates. The yield on the 10-year Treasury note, a benchmark for mortgages and other loans, surged to a two-year high. The uncertainty surrounding the economic data outlook has also led to a decline in risk appetite, with investors wary of potential capital spending cuts and hiring freezes.

Original source: BBC News