Trump Breaks Protocol, Sends Market Signal on Jobs Report Before Data Released

04 June, 2018, 07:57 | Author: Salvatore Jensen
  • Trump appears to comment on jobs report before its official release

Trump was foreshadowing a glowing unemployment report that showed the jobless rate dipped to an 18-year low of 3.8 percent.

Trump tweeted Friday morning that he was "looking forward to seeing the employment numbers at 8:30 this morning", one hour and nine minutes before the Bureau of Labor Statistics released the highly anticipated data.

The director of the White House National Economic Council, Larry Kudlow, briefed Trump on the data on Thursday.

"Don't blame Trump", Mr Kudlow said on "Fox News Sunday".

But the tweet was followed by a swift reaction from markets and a strengthening of the dollar, sparking criticism of the president's handling of sensitive information.

"If he was sending a message that it was a good number, when there is not a good number, we will now know it because he won't tweet", said Kaltbaum.

Many on Wall Street questioned the appropriateness of the president tweeting market-moving news. They appear to have read Trump's tweet correctly. This is one reason why you generally won't see an official statement from the White House or the Administration publicly commenting on any economic report until after the markets have opened in New York City at 9:30 am.

Jason Furman, the head of the Council of Economic Advisers for President Barack Obama, tweeted that if Trump's tweet conveys inside info then he should never get the jobs report briefing again.

He said that Canada, for example, "just kicks us on lumber and puts people out of work in Maine". He told ABC News that the Obama administration "absolutely interpreted [the Labor Department rule] as applying" to the president himself. And Lawrence Summers, who served as treasury secretary for President Bill Clinton, tweeted if during the Clinton or Obama administrations information had been similarly conveyed "it would have been a major scandal - with all sorts of investigations following on".




The Republican National Committee pushed back against criticism of Trump's Friday Twitter post by pointing to a comment Obama made on February 5, 2009, the day before jobs data was released.

"I don't think he gave anything away, incidentally".

A positive jobs report does not necessarily mean the stock market will go up, as investors could see it as a signal that the Federal Reserve will move more aggressively to raise interest rates in an effort to keep the economy from overheating.

On Wall Street, where the 8:30 a.m. release on Jobs Friday is a major event for the markets each month, traders disagreed on whether the tweet actually moved prices, which fluctuate constantly and make it hard to determine if any single event pushed them in one direction or another. The information is protected so carefully that the chairman of the White House Council of Economic Advisers receives it only the afternoon or evening before its release.

As a result, some "two-thirds of the drop in the unemployment rate in May was because workers found jobs, while about one-third of the drop was from people leaving the labor force", the left-leaning Economic Policy Institute noted.

On Friday, Furman criticized Trump via Twitter about even hinting at the jobs report before the official release time.

"This certainly was a no-no".

Kudlow said on CNBC.

Recommended:



Popular

Stanley Cup Finals: Caps tie series with 3-2 win
NOTES: The Golden Knights have scored the opening goal in the first period of all nine of their postseason home games. Shea Theodore replied but the Caps held on for a first Stanley Cup game win before hosting games three and four.

North Koreans to meet Trump, deliver letter from leader
The meeting followed two landmark summits between the leaders of North and South Korea in the last five weeks. White House Press Secretary Sarah Huckabee Sanders also expressed optimism about a nuclear summit.

Heat for tweet: Browns' Randall amazed by jersey posting
A jersey costs around NZ$120, so Randall would have to spend nearly NZ$64 million if he was to honour his promise. For example, Randall meant to attend Games 3 and 4 of the Finals in Cleveland, but now he's unsure.

Drake blackface photo used by Pusha T to promote new track
According to XXL, Leyes tweeted at Pusha T's manager, Steven Victor, to "please get Push to take the Drake photo down asap". Pusha posted photos of Adidon and the alleged Drake baby mother on social media in efforts to poke fun at his arch-rival.

8th-grader wins national spelling bee
Yet amid the bigger Bee, returning spellers continued their dominance , even though a first-time competitor won. Karthik and Naysa were the last two standing of the initial 516 spellers. "I think it's wonderful ".

South Korea want more talks with North Korea before summit
The White House has said that preparations will continue while the final decision on whether to proceed with the summit is made. Russian Federation says Foreign Minister Sergey Lavrov will travel to North Korea for talks on Thursday.

Boston Celtics: 3 reasons the season is over
The only thing he can do to exceed it is go ahead and win another championship against the Warriors or Rockets in a couple weeks. King Lebron scored 35 points with 15 rebounds and nine assists to lead his team to win the Eastern Conference series 4-3.

Zidane steps down as Real Madrid coach
The 45-year-old announced his departure in a surprise press conference at Real Madrid's training ground on Thursday morning. Real president Perez added: "This was a totally unexpected decision, Zidane informed me of his choice yesterday".

Dani Carvajal to join up with Spain squad, RFEF confirm
The medical team is optimistic that Salah will be ready to play for the Egypt football team in the upcoming world cup (sic). The tears of Dani Carvajal in the first half of the Champions League final were what nobody in the stadium wanted to see.

'Fallout 76' Teases a New Vault to Explore in Latest Trailer
For the last 24 hours, Bethesda has been dropping some atomic powered hints that a new Fallout game announcement was imminent . In the trailer however, the place looks barren with a single survivor wearing a Vault 76 suit.