Trump’s nominee to oversee jobs, inflation data faces shower of criticism

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By CHRISTOPHER RUGABER and JOSH BOAK

WASHINGTON (AP) — The director of the agency that produces the nation’s jobs and inflation data is typically a mild-mannered technocrat, often with extensive experience in statistical agencies, with little public profile.

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But like so much in President Donald Trump’s second administration, this time is different.

Trump has selected E.J. Antoni, chief economist at the conservative Heritage Foundation, to be the next commissioner at the Labor Department’s Bureau of Labor Statistics. Antoni’s nomination was quickly met with a cascade of criticism from other economists, from across the political spectrum.

His selection threatens to bring a new level of politicization to what for decades has been a nonpartisan agency widely accepted as a producer of reliable measures of the nation’s economic health. While many former Labor Department officials say it it unlikely Antoni will be able to distort or alter the data, particularly in the short run, he could change the currently dry-as-dust way it is presented.

Antoni was nominated by Trump after the BLS released a jobs report Aug. 1 that showed that hiring had weakened in July and was much lower in May and June than the agency had previously reported. Trump, without evidence, charged that the data had been “rigged” for political reasons and fired the then-BLS chair, Erika McEntarfer, much to the dismay of many within the agency.

Antoni has been a vocal critic of the government’s jobs data in frequent appearances on podcasts and cable TV. His partisan commentary is unusual for someone who may end up leading the BLS.

For instance, on Aug. 4 — a week before he was nominated — Antoni said in an interview on Fox News Digital that the Labor Department should stop publishing the monthly jobs reports until its data collection processes improve, and rely on quarterly data based on actual employment filings with state unemployment offices.

The monthly employment reports are probably the closest-watched economic data on Wall Street, and can frequently cause swings in stock prices.

When asked at Tuesday’s White House briefing whether the jobs report would continue to be released, press secretary Karoline Leavitt said the administration hoped it would be.

“I believe that is the plan and that’s the hope,” Leavitt said.

Leavitt also defended Antoni’s nomination, calling him an “economic expert” who has testified before Congress and adding that, “the president trusts him to lead this important department.”

Yet Antoni’s TV and podcast appearances have created more of a portrait of a conservative ideologue, instead of a careful economist who considers tradeoffs and prioritizes getting the math correct.

“There’s just nothing in his writing or his resume to suggest that he’s qualified for the position, besides that he is always manipulating the data to favor Trump in some way,” said Brian Albrecht, chief economist at the International Center for Law and Economics.

Antoni wrongly claimed in the last year of Biden’s presidency that the economy had been in recession since 2022; called on the entire Federal Reserve board to be fired for not earning a profit on its Treasury securities holdings; and posted a chart on social media that conflated timelines to suggest inflation was headed to 15%.

His argument that the U.S. was in a recession rested on a vastly exaggerated measure of housing inflation, based on newly-purchased home prices, to artificially make the nation’s gross domestic product appear smaller than it was.

“This is actually maybe the worst Antoni content I’ve seen yet,” Alan Cole of the center-right Tax Foundation said on social media, referring to his recession claim.

On a 2024 podcast, Antoni wanted to sunset Social Security payments for workers paying into the system, saying that “you’ll need a generation of people who pay Social Security taxes but never actually receive any of those benefits.” As head of the BLS, Antoni would oversee the release of the consumer price index by which Social Security payments are adjusted for inflation.

Many economists share, to some degree, Antoni’s concerns that the government’s jobs data has flaws and is threatened by trends such as declining response rates to its surveys. The drop has made the jobs figures more volatile, though not necessarily less accurate over time.

“The stock market moves clearly based on these job numbers, and so people with skin in the game think it’s telling them something about the future of their investments,” Albrecht said. “Could it be improved? Absolutely.”

Katharine Abraham, an economist at the University of Maryland who was BLS Commissioner under President Bill Clinton, said updating the jobs report’s methods would require at least some initial investment.

The government could use more modern data sources, she said, such as figures from payroll processing companies, and fill in gaps with surveys.

“There’s an inconsistency between saying you want higher response rates and you want to spend less money,” she said, referring to the administration’s proposals to cut BLS funding.

Still, Abraham and other former BLS commissioners don’t think Antoni, if confirmed, would be able to alter the figures. He could push for changes in the monthly press release and seek to portray the numbers in a more positive light.

William Beach, who was appointed BLS commissioner by Trump in his first term and also served under Biden, said he is confident that BLS procedures are strong enough to prevent political meddling. He said he didn’t see the figures himself until two days before publication when he served as commissioner.

“The commissioner does not affect the numbers,’’ Beach said. “They don’t collect the data. They don’t massage the data. They don’t organize it.”

Regarding the odds of rigging the numbers, Beach said, “I wouldn’t put it at complete zero, but I’d put it pretty close to zero.’’

It took about six months after McEntarfer was nominated in July 2023 for her to be approved. Antoni will likely face stiff opposition from Democrats, but that may not be enough to derail his appointment.

Sen. Patty Murray, a senior Democrat from Washington, on Tuesday slammed Antoni as “an unqualified right-wing extremist” and demanded that the GOP chairman of the Senate Health, Education, Labor and Pensions Committee, Sen. Bill Cassidy of Louisiana, hold a confirmation hearing for him.

Associated Press Staff Writers Paul Wiseman and Stephen Groves contributed to this story.

Former aide to Eric Adams pleads guilty to soliciting straw donations for mayor’s campaign

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By JAKE OFFENHARTZ

NEW YORK (AP) — A former aide to New York City Mayor Eric Adams pleaded guilty Tuesday to soliciting straw donations in a case tied to separate corruption charges against Adams that the Trump administration ultimately decided to drop.

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Mohamed Bahi, who served as City Hall’s chief liaison to the Muslim community, admitted in federal court that he helped solicit the illegal donations for Adams’ mayoral campaign from employees of a Brooklyn construction company at a December 2020 fundraiser.

“I understood that the Adams campaign would then seek matching funds for those donations,” Bahi told a judge, adding that he knew the employees would be reimbursed and “that it was wrong.”

Bahi, 41, was originally charged in October with witness tampering and destroying evidence as part of a sweeping federal investigation into Adams, culminating in the indictment of the mayor on charges of accepting bribes and campaign contributions from foreign interests in a separate fundraising scheme.

At the time, prosecutors said it was “likely” that others would be charged as part of “several related investigations.”

Then, in February, the Justice Department ordered federal prosecutors to drop the charges against Adams, arguing the case was interfering with the mayor’s ability to assist in President Donald Trump’s crackdown on illegal immigration.

The remarkable intervention prompted protests and resignations from several top prosecutors, including the interim U.S. attorney in Manhattan, who accused Adams of striking a quid pro quo with Trump.

Adams has adamantly denied any wrongdoing and pledged to continue his re-election campaign on an independent ballot line.

But even as the mayor no longer faces legal consequences, it has remained an open question how prosecutors will handle the web of investigations into his inner circle and campaign apparatus.

They have not provided any information about the status of other cases, including investigations that resulted in federal agents seizing phones last fall from the city’s police commissioner, multiple deputy mayors and other close advisers to Adams.

The owner of a separate construction company, Erden Arkan, pleaded guilty in January to funneling illegal campaign contributions to Adams. He is scheduled for sentencing later this week.

Bahi will be sentenced on Nov. 17 on a charge of conspiracy to commit wire fraud. He faces a maximum prison sentence of five years.

Bahi and his lawyer declined to comment as he left the courtroom Tuesday.

A spokesperson for the U.S. attorney in Manhattan did not respond to an emailed inquiry.

A spokesperson for Adams also did not return messages seeking comment.

Crypto mogul Do Kwon, known as ‘the cryptocurrency king,’ pleads guilty to fraud charges

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By LARRY NEUMEISTER

NEW YORK (AP) — South Korean cryptocurrency mogul Do Kwon pleaded guilty on Tuesday to two fraud charges arising from the $40 billion collapse of a cryptocurrency ecosystem that had promised investors their money was safe.

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Kwon, 33, dubbed by some as “the cryptocurrency king,” entered the plea in Manhattan federal court.

According to a plea agreement signed by Kwon and prosecutors, the government said it will not seek a prison term of more than 12 years as long as Kwon complies with the deal’s terms, even though federal sentencing guidelines would have recommended a prison term of about 25 years. Sentencing is set for Dec. 11.

Authorities said investors worldwide lost money in the Singapore crypto firm Terraform Labs’ $40 billion cryptocurrency crash. Kwon co-founded the company in 2018.

The May 2022 collapse came after the company claimed that TerraUSD was a reliable “stablecoin.”

TerraUSD was designed as a “stablecoin,” a currency that is pegged to stable assets such as the dollar to prevent drastic fluctuations in prices. However, around $40 billion in market value was erased for the holders of TerraUSD and its floating sister currency, Luna, after the stablecoin plunged far below its $1 peg.

Kwon was extradited to the United States on Dec. 31 from Montenegro after his March 23, 2023, arrest while traveling on a false passport in Europe.

As part of his plea to one count of conspiring to commit commodities fraud, securities fraud and wire fraud and a second count of wire fraud, Kwon also agreed to forfeit over $19 million, an amount that authorities said reflected ill-gotten proceeds. He’ll also lose his interest in Terraform and its cryptocurrencies.

His lawyer, Sean Hecker, said the plea meant that Kwon had accepted responsibility for making false and misleading statements to investors.

In a statement, the lawyer said his client “takes responsibility for misleading the Terra community.”

In a news release, U.S. Attorney Jay Clayton said Kwon “used the technological promise and investment euphoria around cryptocurrency to commit one of the largest frauds in history.”

He said investors around the world suffered billions of dollars in losses.

Mexico expels 26 cartel figures wanted by US authorities in deal with Trump administration

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By ALANNA DURKIN RICHER and MARÍA VERZA

WASHINGTON (AP) — Mexico has expelled 26 high-ranking cartel figures to the United States in the latest major deal with the Trump administration as American authorities ratchet up pressure on criminal networks sending drugs across the border, a person familiar with the matter told The Associated Press on Tuesday.

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The cartel leaders and other prominent figures were being flown from Mexico to the U.S. on Tuesday, the person said. They spoke on the condition of anonymity because they were not authorized to discuss the operation that was still ongoing.

Those being handed over to U.S. custody include Abigael González Valencia, a leader of “Los Cuinis,” a group closely aligned with notorious cartel Jalisco New Generation or CJNG. Another person, Roberto Salazar, is accused of participating in the 2008 killing of a Los Angeles County sheriff’s deputy, the person said.

Mexico’s Attorney General’s Office and Security ministry confirmed the transfers, which were carried out after a promise from the U.S. Justice Department that prosecutors would not seek the death penalty in any of the cases.

It’s the second time in months Mexico has expelled cartel figures accused of narcotics smuggling, murder and other crimes amid mounting pressure from the Trump administration to curb the flow of drugs across the border. In February, Mexico handed over to American authorities 29 cartel figures, including drug lord Rafael Caro Quintero, who was behind the killing of a U.S. DEA agent in 1985.

Those transfers came days before 25% tariffs on Mexican imports were to take effect. Late last month, President Donald Trump spoke with Mexico President Claudia Sheinbaum and agreed to put off threatened 30% tariffs for another 90 days to allow for negotiations.

Sheinbaum has shown a willingness to cooperate more on security than her predecessor, specifically being more aggressive in pursuit of Mexico’s cartels. But she has drawn a clear line when it comes to Mexico’s sovereignty, rejecting suggestions by Trump and others of intervention by the U.S. military.

The Trump administration made dismantling dangerous drug cartels a key priority, designating CJNG and seven other Latin American organized crime groups foreign terrorist organizations.

Abigael González Valencia is the brother-in-law of CJNG leader Nemesio Rubén “El Mencho” Oseguera Cervantes, a top target of the the U.S. government. He was arrested in February 2015 in Puerto Vallarta, Jalisco and had been fighting extradition to the United States since then.

Alongside his two brothers, he led “Los Cuinis,” which financed the the founding and growth of the CJNG, one of the most powerful and dangerous cartels in Mexico. CJNG traffics hundreds of tons of cocaine, methamphetamine, and fentanyl into the United States and other countries and is known for extreme violence, murders, torture, and corruption.

One of his brothers, José González Valencia, was sentenced in Washington’s federal court in June to 30 years in a U.S. prison after pleading guilty to international cocaine trafficking. Jose González Valencia was arrested in 2017 under the first Trump administration at a beach resort in Brazil while vacationing with his family under a fake name.

Verza reported from Mexico City