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Samantha Handler at Punchbowl reports that Senator Bill Cassidy (R-LA) has acknowledged that President Donald Trump's removal of former Bureau of Labor Statistics Commissioner, Erica McEntarfer, was "understandable". Cassidy chairs the Senate Health, Education, Labor, and Pensions (HELP) Committee, which has jurisdiction over the nomination of EJ Antoni to replace McEntarfer at the BLS.  

• Cassidy's spokesperson said in a statement: "BLS's years-long failure to produce reliable data - especially when that data has broad market-moving implications - is unacceptable. We need a BLS Commissioner committed to producing accurate, unbiased economic information to the American people. Chairman Cassidy looks forward to meeting with Dr. Antoni to dicuss how he will accomplish this."
• In the last hour or so, Fox Business published an interview with Antoni, conducted before Trump announced his nomination, in which he suggested the possibility of suspending the bureau's monthly jobs report. See: US: BLS Commissioner Nominee Antoni Suggests Suspending Monthly Payrolls Report
• The HELP Committee has an 11-10 Republican balance of power, meaning moderate Republican committee member Susan Collins (R-ME) is likely to be the crucial vote on advancing Antoni's nomination to a full Senate vote. Collins, an institutionalist, theoretically has the power to delay Antoni's nomination, subject to assurances that the BLS will maintain critical data releases.
• When lawmakers return from recess on September 2, time on the Senate floor will be limited as Senators must also address FY26 funding, pending exec branch nominations, and the nomination of Stephen Miran to temporarily fill the vacant Fed seat.

• Whilst core goods inflation undershot expectations for a further acceleration in M/M terms, a still solid monthly clip compared to 2024 levels (0.21% M/M in July after 0.20% in June vs -0.06% M/M averaged in 2024) is starting to see an increased share of items growing in excess of 3% Y/Y.
• We calculate 24% of core goods items increased >3% Y/Y in July after 18% in June to take it further away from recent lows of 13-14% through Oct-Jan. It's the highest share since Feb 2024.
• Context is important though, as it’s above the 18.5% averaged in 2019 and 12% averaged through 2015-19 but still of course far below the highs of 75% seen in late 2022. 
• The core services equivalent meanwhile increased for a third consecutive month to 62% having recently bottomed at 50% in April. It averaged 38% in 2019 and 34% in 2015-19 for a longer pre-pandemic period. 

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