BAD PRESIDENT
‘Wildly Illegal’: Experts Weigh in on Trump’s Pre-Release Hinting at Good Jobs Numbers
Since at least 1985 there has been a federal regulation that prohibits government employees from publicly discussing in any manner jobs report numbers before they are released. It’s in place to ensure manipulation of the markets does not take place, and to ensure the perception of integrity of federal agencies.
At 7:21 Friday morning President Donald Trump posted a tweet in apparent violation of federal law.
Looking forward to seeing the employment numbers at 8:30 this morning.
— Donald J. Trump (@realDonaldTrump) June 1, 2018
It’s not the first time the Trump administration has violated this federal law, which was, as ThinkProgress points to, was published in the federal register decades ago. It reads in part, “employees of the Executive Branch shall not comment publicly on the data until at least one hour after the official release time.” The numbers are closely guarded and released at 8:30 AM.
The White House immediately rushed to defend Trump’s actions.
BREAKING: White House Press Sec. tells CNBC that President Trump was briefed on the jobs report last night & it was appropriate to tweet that he was ‘looking forward’ to the report this morning because he didn’t put the numbers out early https://t.co/4LLtae6nUY pic.twitter.com/JGSSJgZBdl
— CNBC Now (@CNBCnow) June 1, 2018
Larry Kudlow, the president’s director of the National Economic Council, admits he shared the good news with Trump Thursday evening – which is entirely legal and customary.
But sharing them with your pals before they are released isn’t, as one writer for The New York wonders about:
The President, typically, is briefed on the jobs numbers on Thursday afternoon. The public learns them Friday morning.
This President spends hours talking to rich friends each night. If he tells them the numbers early, they can instantly make millions. @SEC_Enforcement https://t.co/69RbkmxGI9
— Adam Davidson (@adamdavidson) June 1, 2018
CNBC’s John Harwood wondered aloud as well:
speaking of which, interesting to know whether Trump shared them with Hannity last night https://t.co/M3DmrkEkLO
— John Harwood (@JohnJHarwood) June 1, 2018
And if you’re wondering if Trump’s tweet had any impact on the markets, here’s what Bloomberg Business reporter Lisa Abramowicz has to say:
This is…unusual. Trump tweeted about jobs day at 7:21am EST, suggesting he knew the numbers would be surprisingly good. https://t.co/k35UPSEPI6 That’s how the market took it anyway, with U.S. yields taking a leg higher right after. Raises a lot of questions. pic.twitter.com/TcN9oLNYqU
— Lisa Abramowicz (@lisaabramowicz1) June 1, 2018
Many economics experts are making clear Trump’s tweet was likely an illegal act in violation of federal regulations.
The former Chairman of the White House’s Council of Economic Advisers, Austan Goolsbee suggests Trump broke the law:
If the president just tipped that the numbers are good, he broke the law https://t.co/8MDJZAS22j
— Austan Goolsbee (@Austan_Goolsbee) June 1, 2018
Former White House aide and CNN political contributor Keith Boykin:
Trump violated the law again this morning when he tweeted about the May #jobsreport before it was released. https://t.co/JoAzpf2XS9
— Keith Boykin (@keithboykin) June 1, 2018
Elizabeth C. McLaughlin, whose bio describes her in part as “a fifteen year career as a full-time Wall Street securities litigator and trial lawyer,” says it’s “Wildly illegal”:
Wildly illegal. I’m a former securities fraud litigator. The SEC will doubtless be looking at the trades that resulted immediately after this. https://t.co/RaxhgedAww
— ElizabethCMcLaughlin (@ECMcLaughlin) June 1, 2018
Former Secretary of the Treasury and former Director of the National Economic Council (the position now held by Larry Kudlow), Lawrence Summers:
If during the Clinton or Obama Administrations there had been a statement from @POTUS or anyone senior official in the morning before the Employment Report it would have been a major scandal—with all sorts of investigations following on.
— Lawrence H. Summers (@LHSummers) June 1, 2018
New York University Stern School of Business professor on what Summers said:
Agreed. Trump tipped off some investors an hour before the most closely held economic report, the employment report https://t.co/Ls6r0Bj8C5
— Nouriel Roubini (@Nouriel) June 1, 2018
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