Ray Dalio, founder of Bridgewater Associates, says that the US Government needs to reconsider how they gather their economic data.
Erika McEntarfer was fired by President Donald Trump over the weekend due to a significant downward revision of employment numbers.
The BLS revised the June job growth numbers down from 147,000 jobs to just 14,000, which is a 90 percent drop.
The figures for May have also been revised downwards from 144,000 jobs to 19,000. This brings the two-month combined revision down to 258,000.
Analysts at US banks started citing these data as evidence that the economy is slowing and potentially flashing recession signals.
Ray Dalio, despite the controversy surrounding the firing of the BLS commissioner, said in a social media post that he too would have terminated her.
It’s not because the process of making estimations is outdated and prone to errors, but rather that there isn’t a good solution in place. This is reflected in the huge revisions to Friday’s numbers, which brought them closer to private estimates.
“I assure you, I am very knowledgeable about this topic because I follow and predict the direction of the economy using data.”
Dalio believes that if Trump did indeed fire the BLS head for political reasons only, it could be “a big problem.”
The investor then says: “It’d be nice if Trump was more clear about his thoughts.”
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As new information becomes available, this post Billionaire Ray Dalio calls for a re-evaluation of US government economic data estimates amid BLS controversy may change.
