How Trump's pre-jobs report tweet moved the market

How Trump's pre-jobs report tweet moved the market

The problem: The president's tweet came before the release of the report by the Bureau of Labor Statistics, which breaks protocol about not commenting on the report before its public release.

The May jobs report showed the USA economy added 223,000 jobs compared with an average monthly gain of 191,000 over the prior 12 months, and that the unemployment rate edged down to an 18-year low of 3.8 percent.

Lawrence Kudlow, director of Trump's National Economic Council, said in a brief interview that Trump had the numbers last night and his tweet wasn't meant to signal a positive report.

Ironically, candidate Donald Trump used to regularly dismiss the accuracy of the numbers in the jobs report his administration is now eager to brag about. There was a noticeable reaction in some markets, with the dollar climbing in the wake of the tweet as benchmark Treasury yields extended their advance to new highs for the day.

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

Many on Wall Street questioned the appropriateness of the president tweeting market-moving news.

The strong numbers come as some economists worry that a threatened trade war could damage the USA economy and as investors fret that the news will further pressure the Federal Reserve to speed up the rate at which it increases interest rates.

Meanwhile, White House Press secretary Sarah Huckabee Sanders said that the president's tweet was appropriate because "he didn't put the numbers out". Most national reporters live in Washington or NY and don't know any factory workers and don't think about them.

"I apologize if we were a little excited, and we're so excited to see so many Americans back to work", Spicer said at the time.

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Because the president would be briefed on the numbers ahead of time, his decision to promote the announcement gave rise to accusations of "market manipulation".

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.

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

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.

It's obvious that Trump - who last month made explicitly clear that for him, all news that casts him in a negative light is "fake news" - wouldn't have posted such a tweet if the forthcoming jobs report didn't reflect positively on him. "And if this tweet is conveying inside information about a particularly good jobs number you should never get them in advance from the Council of Economic Advisers again".

President Donald Trump talks to reporters as he boards Air Force One to depart for a trip to Houston and Dallas, Texas, from Joint Base Andrews in Maryland, May 31, 2018.

"We've reached yet one more historic milestone with 3.8 percent unemployment, just announced", Trump said later Friday at a Coast Guard ceremony.

"You can read into that 10 different things", Kudlow said.

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