Why Kevin Warsh's Job Just Got a Lot Harder. And What It Means for the Stock Market.
The July jobs report suggests the labor market is weaker than many thought.
Overview
Just when it seemed that Kevin Warsh's job was difficult enough, the July jobs report, released on Aug. 7, added another layer of complexity, and it could complicate the outlook for the stock market, too.
The new Federal Reserve chair took his position in May of this year amid elevated and persistent inflation. After spiking above 9% in the wake of the COVID-19 pandemic, the overall price level has been declining steadily in recent years. But the U.S. war on Iran, which began in late February, has pushed the inflation rate back up in recent months.
Details
Headline inflation was 3.5% over the past 12 months (as of June, the latest reading available). Even when you exclude volatile food and energy items, prices rose 2.6% over the past year. That's well above the Fed's long-term target of 2%.
Source
Originally published at www.fool.com.