President Donald Trump has dismissed Erika McEntarfer, head of the Bureau of Labor Statistics (BLS), after a disappointing July jobs report showed the United States added only 73,000 jobs, triggering a market sell-off.

Trump accused McEntarfer, who was appointed under President Biden, of mismanaging labor data and said a new leader would restore accuracy and transparency. Her deputy William Wiatrowski will serve as acting commissioner.

The move came as the S&P 500 fell 1.6 percent, its sharpest drop in two months, amid investor concern over weak hiring and the administration’s expanding tariffs on China and Europe.

Economists and former officials condemned the firing, warning that it could undermine the independence of U.S. economic data. “When data is politicized, markets lose trust,” said one analyst.

The White House has not yet named a permanent replacement. Critics say the decision deepens uncertainty about economic policy and the credibility of future reports.