Why Kevin Warsh's Job Just Got a Lot Harder. And What It Means for the Stock Market.

The July jobs report revealed the U.S. economy shed 23,000 jobs with declining job gains since March, complicating Fed Chair Kevin Warsh's dual mandate of controlling inflation (3.5% headline, 2.6% core) and maintaining employment. While markets initially rallied on reduced rate hike expectations, a weakening economy could limit the Fed's policy options and create broader financial market concerns.