Trump advisor admits trade dispute a risk to US economy

U.S. President Donald Trump gets market-moving information long before its released to the public. More

U.S. President Donald Trump gets market-moving information long before its released to the public. More

"Looking forward to seeing the employment numbers at 8:30 this morning", Trump tweeted at 7:21 a.m. ET.

Indeed, May's report showed the economy added 223,000 jobs in May, pushing the unemployment rate to just 3.8 percent, a level not seen in 18 years.

The rule further specifies that federal employees other than Labor Department staff charged with issuing the report can not publicly comment on the data for the first hour after the release time, let alone ahead of the report.

However, under a longstanding Office of Management and Budget procedure, US presidents are briefed about the report by the chairman of the White House Council of Economic Advisers before the official release time.

Several hours after the report was officially released, Trump, speaking at a U.S. Coast Guard change-of-command ceremony, said the jobs data represented "yet one more historic milestone".

However, Jason Furman, who chaired the Council of Economic Advisers during President Barack Obama's second term, told The New York Times via email in March 2017: "The interpretation of our administration (like Clinton and Bush) was that this applied to POTUS" (President of the United States). In the hours leading up to the release of future jobs reports, investors will watch carefully for clues provided by presidential tweets (or lack thereof). He told ABC News that the Obama administration "absolutely interpreted [the Labor Department rule] as applying" to the president himself.

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

"Since Trump knows the numbers this is market manipulation", he said. Sanders also said that Trump had been "briefed" on the report Thursday night, despite his tweet suggesting curiosity rather than knowledge of the report. "The advance info is sacrosanct - not to be shared", he wrote. Globally, the US government is considered a gold standard in terms of the quality and reliability of the information it releases - not a reputation worth trashing for a tweet.

"Look, Presidents can say what they are going to say", Kudlow continued.

"He chose to tweet", Kudlow said, asserting that Trump had followed both the rules and past practices.

Those anxious that tariffs could backfire by killing need to remember that nobody has been more effective in building up the poor than President Trump, according to his senior trade adviser. "But secondly, and fundamentally, its really important that government statistics are perceived as being nonpartisan, nonpolitical data". "It's not the first norm he's breached; I think I've lost count of how many norms he's ignored or violated". Again, the reasoning by this part of the rule is obvious, to prevent comments from the government from having an impact on the market or giving traders advance knowledge of information the public isn't supposed to have until its official release time.

Speaking to reporters ahead of his departure for Texas on Thursday, Trump spoke glowingly about the "best unemployment we've had in many, many decades", though it's unclear if he was just speaking generally about the state of the economy or was speaking specifically to the content of the May report. That was higher than the growth of 188,000 positions that economists had expected.

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