Published: Mon, June 04, 2018
Global | By Craig Ferguson

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

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

I also weighed in, writing: "Trump broke with decades of protocol and commented publicly about jobs report data about an hour before they were released by the Bureau of Labor Statistics".

Treasury yields moved sharply higher within seconds of a tweet from Trump that said he was "looking forward to seeing the employment numbers at 8:30 this morning".

According to a Labor Department rule, executive branch employees are barred from publicly commenting on the jobs report until "at least one hour" after its official release. Bloomberg News data also showed that the value of the USA dollar moved sharply higher after the Twitter post compared with previous trades the mornings jobs data are released.

Since then, Trump administration officials have been careful not to violate the directive.

The latest report showed the US economy added 223,000 jobs in May and reflected a 0.1 percent decline in the unemployment rate to 3.8, an 18-year low, further bolstering Trump's argument that his administration's work has greatly helped the economy. And according to CNBC, that's really great news for everyone - except Democrats. The direction those numbers take on any given day can move the markets for stocks and bonds alike in significant directions, especially if they diverge significantly from what analysts and traders were expecting from those numbers.

US employers added 223,000 jobs in May helping lower the unemployment rate to the lowest point since 1969.

Omair Sharif, a senior US economist at Societe Generale, said the tweet creates a conundrum for traders ahead of future jobs reports.

President Trump walks to his vehicle after arriving at Ellington Field Joint Reserve Base, Thursday, May 31, 2018, in Houston.

"Why not? He didn't give any numbers", Kudlow told reporters at the White House. "No one revealed the numbers to the public".

On Thursday night, Larry Kudlow, President Donald Trump's economic adviser, briefed Trump about the jobs data while they were travelling together aboard Air Force One. "You can read into that 10 different things if you want to read into it".

When the report was officially released, the jobs market showed a strong growth.

The rule governing comment on the jobs data was put in place for at least two reasons.

The Department of Labor, which releases the job report, did not immediately respond to a request for comment. Before Friday, Trump had never tweeted ahead of the jobs report, even when there was stronger job creation than May's solid 223,000 payroll gain. "He jumped over it". Friday's tweet, however, was the first time he's ever spoken about the job's report before it was released.

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.

Trump and his administration have run afoul of the rule before, but only after the data was released. In past administrations, that task was often performed by the CEA chairman, who is seen as less political.

"I think trade can dovetail into this in a positive way if the president is able to challenge these trading practices and allow Americans to export freely around the world", Mr. Kudlow said.

"Risks are brewing. with the latest round of tariffs on aluminum and steel", said Joseph Song, an economist at Bank of America Merrill Lynch. And it came at the height of the financial crisis, when companies were laying off workers and the stock market was sliding almost every day. Anyone with inside information on the results - did the economy add or lose jobs? - could easily profit off it.

Trump's tweet received harsh criticism from former members of the Obama administration.

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