Weak Jobs Report Puts Inflation Data Under Fed Spotlight

The US economy lost 23,000 jobs in July, according to the Bureau of Labor Statistics, which may signal an unhealthy trend for the labor market.

This could change the calculus for the Federal Reserve, which has a dual mandate: keeping inflation in check and supporting demand enough to keep the labor market humming.

The Fed's newly appointed chair, Kevin Warsh, has emphasized fighting inflation, but the weak jobs report may force him to consider the labor market aspect of his mandate.

Investors are looking for clues on what the Fed will do next in this week's CPI report, which is expected to come in at 3.4% year-over-year.