Warsh Considers Rate Hike Despite Weak Jobs Report

Last week's job numbers were unexpectedly weak, missing the mark by a wide margin. The S&P 500 has continued to generate above-average gains this year and may be overdue for a pullback.

Despite the disappointing employment report, Federal Reserve chair Kevin Warsh is not ruled out an interest rate hike at the next FOMC meeting. According to CME FedWatch, there's a roughly even chance of a rate increase next month, with plenty of uncertainty in the market about what may happen.

Warsh has indicated he won't be swayed by a single data point and is committed to getting inflation down to 2%. Raising interest rates is seen as one of the best ways to achieve this goal. The annual inflation rate cooled from 4.2% to 3.5% last month, but Warsh referred to it as just 'one data point', suggesting more work needs to be done.