Yesterday’s News 2026 02 03

curated news excerpts & citations

pixelated dollar and graphs - Carl Godfrey for BI

Business Insider: America’s economy is ‘driving through the fog’

The decline of economic data could end up with a lot of unemployed workers and increase the chance of recession

For people who rely on the BLS, the past year has raised acute concerns. The first was President Donald Trump’s firing of BLS Commissioner Erika McEntarfer in July. Revisions to that month’s jobs report showed that the US had created far fewer jobs than initially reported in the previous two months. Revisions are a standard part of the BLS data collection process, and the size of the adjustments was well within historical norms. Economists warned that the firing could be a harbinger of political meddling in the crucial job and price figures. Jed Kolko, a senior fellow at the Petersen Institute for International Economics, called the firing a “five-alarm intentional harm to the integrity of US economic data and the entire statistical system.” Skanda Amarnath, Executive Director of Employ America, a think tank, said, “public trust is permanently harmed when the BLS commissioner is fired after one bad jobs report.”

(Business Insider more…)

Paul Krugman: Kevin Warsh and Weathervane Economics

WSJ: U.S. Manufacturing Is in Retreat and Trump’s Tariffs Aren’t Helping

Levies on imports were supposed to bring back a golden age of U.S. manufacturing. They haven’t worked, so far.

James Eagle: Central bank balance sheets are no longer temporary


This matters because size changes behaviour. When central banks hold large portions of government bond markets, their actions influence yields, liquidity and risk appetite even when policy rates are unchanged. Balance sheets become an active policy channel rather than a background detail.


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