Federal Reserve Chair Kevin Warsh may still raise interest rates at the next FOMC meeting despite a surprisingly weak July jobs report that showed a loss of 23,000 positions versus an expected gain of 80,000. Warsh has previously dismissed single data points, including last month's inflation cooling from 4.2% to 3.5%, and remains committed to bringing inflation down to 2%. CME FedWatch indicates a roughly 50% probability of a rate increase next month. The S&P 500 has risen 13% this year and doubled since 2023, but higher rates could derail that performance by raising business costs and pressuring share prices.
