Warsh Signals Rate Hike Despite Weak Jobs Report

Last week's job numbers were significantly worse than expected, with 23,000 jobs lost in July. This is contrary to the 80,000 jobs economists predicted would be added. Despite a weak jobs report, there is still a possibility that Federal Reserve Chair Kevin Warsh will raise interest rates at the next FOMC meeting.

Warsh has indicated that he won't be swayed by a single data point. He sees last month's inflation report as just 'one data point,' and is committed to getting inflation down to 2%. Raising interest rates is seen as an effective way to control inflation, which currently stands at 3.5%, down from 4.2% in the previous month.

The market may be overdue for a pullback regardless of what happens with interest rates. The S&P 500 has risen by 13% so far this year and could use some correction given its recent performance. Higher interest rates would increase costs for businesses, potentially negatively impacting share prices.