A panel of three economic experts spoke to Iowa State University students Thursday in a packed Sun Room at the Memorial Union.

The panelists answered questions from students about major U.S. economic issues, including tariffs, immigration policy, political pressure and how economic statistics are reported.

Reporting economic data

The discussion began with a student asking Katharine Abraham, the former commissioner of the Bureau of Labor Statistics (BLS) and current president of the American Economic Association, about the need for public information regarding the economy.

“One big use of this data is being able to track where the economy is headed,” Abraham said. “The Federal Reserve Board, when trying to set monetary policy, needs to figure out where the economy is headed, and to do that, the data needs to be consistent.”

The student followed up with a question about the challenges regarding the politicization of releasing economic data and the firing of BLS employees.

In August, President Donald Trump ordered the firing of former BLS commissioner Erika McEntarfer after a July jobs report showed weaker-than-expected hiring numbers, saying that the numbers were “manipulated for political purposes.”

Abraham said that economic agencies have historically been bipartisan, producing objective data for Republican and Democratic administrations.

“I was horrified last summer when, following a bad employment report, the president fired the head of the Bureau of Labor Statistics,” Abraham said. “There was no justification for doing that.”

Abraham added that McEntarfer’s firing raises questions about the validity of economic data that the BLS has produced since August.

“If people don’t believe that the numbers coming out of the agency are objective, they will not be very valuable,” Abraham said. 

Trump recently nominated longtime BLS staffer Brett Matsumoto to be the next commissioner of the agency.

Abraham said that Trump selecting a BLS employee to head the agency is a step in the right direction.

“I think it’s a good thing,” Abraham said. “But, it’s really important that the professionalism of these agencies be respected.”

Interest rates

Minnesota Federal Reserve Bank (Fed) executive Benjamin Malin was asked about political pressure urging the Fed to lower its interest rates.

Trump has publicly encouraged the Fed to lower its interest rates, citing potential benefits to the economy, although some economists believe that the president’s remarks could lead to higher interest rates in the future, as questions would arise regarding the Fed’s independence.

Malin said that Fed workers have a mandate from Congress to carry out economic decisions based on data and trends.

“I don’t think there’s a lot of evidence of political pressure having an impact,” Malin said. “We have a mandate, and we should be using our tools to achieve that mandate.”

Tariffs and trade

Entrepreneur and private equity fund manager Genevieve Signoret answered a question about the pros and cons of international trade.

Signoret said her industry is heavily influenced by the Trump administration’s trade policy, and unpredictability has made it difficult for investors to plan.

Signoret added that trade policy under Trump has intertwined itself with foreign, drug and industrial policy, describing the policies as “unstable.”

“It is nearly impossible for any of us who are embedded in this global economy to plan,” Signoret said. “We can’t invest.”

Signoret criticized Trump’s tariffs on foreign countries, saying that the administration’s policy has weakened the international market.

“Last April, when the tariffs were announced, we saw stocks falling, long-term treasuries being sold off and the dollar weakening at the same time,” Signoret said. 

Signoret concluded her answer by describing how markets behave, emphasizing the rule of law and transparency.

“The world doesn’t come from slogans, it comes from institutions that allow people to take risks with confidence, and right now, those institutions are moving under our feet,” Signoret said.

Immigration

The final 10 minutes of the discussion concluded with the panelists answering questions from audience members.

One audience member asked the panel about the impact that immigrants have on the labor market in the U.S.

“I think there’s a lot of evidence that immigration has benefited the U.S. economy,” Abraham said.

Abraham added that increased immigration has been associated with faster innovation, productivity growth and more entrepreneurship in the U.S.

Abraham raised concerns that decreased immigration to the U.S. could significantly alter employment and population growth.

“If you shut off the immigration valve and you have fewer people of working age entering the workforce, the number of jobs that you need to keep the employment-to-population ratio constant is a lot lower,” Abraham said.

Navigating the political climate

The discussion concluded with Malin being asked about how independent agencies like the Fed will be able to navigate the current political climate in the future.

Malin said that the best way for the Fed to navigate the political climate is to be transparent and gain the trust of the public.

“I think we need to be clear when we make decisions, provide our rationale and communicate that to the public,” Malin said. “Those are things we push for at the Federal Reserve in terms of being objective.”

After all questions were answered, Signoret was recognized and received an award for her contributions to economic programs at Iowa State.