Jobs Report Sends Mixed Signal on Fed Rates

The July jobs report showed job losses and big downward revisions, but the bigger question is whether the labor market is actually weakening or simply running into a shrinking supply of workers.Chuck Zodda and Mike Armstrong break down the latest jobs report, why the unemployment rate fell even as the economy lost 23,000 jobs, and why the decline in foreign-born workers may explain much of the recent slowdown in job growth. They also discuss what the report could mean for Kevin Warsh and the Fed, why small rate moves may matter less than markets assume, and how mortgage rates can move independently from Fed policy. Plus, they look at fast food earnings from McDonald’s, Wendy’s, and Burger King, the debate over whether Warsh is really changing Fed communication, rising AI-related debt issuance from companies like Alphabet and Amazon, and why software companies are racing to prove they can survive the AI threat.