Fed Chairmain Warsh 'has been unfairly treated,' says Apollo Global's Torsten Slok

Summary

Torsten Slok discusses the July jobs report, noting potential seasonal quirks that may have depressed the headline number. He expects the market to focus on CPI data and the upcoming Jackson Hole symposium for Fed policy signals, while acknowledging Trump's recognition that the FOMC is a committee decision.

• July payrolls fell 23k, but Slok flags unusual declines in local government education and hospitality that could be seasonal.
• Despite quirks, underlying data shows a softening labor market, pushing market to expect slightly lower rates and delayed Fed hikes.
• CPI next week will be critical for setting the agenda for the September FOMC meeting.
• Jackson Hole may provide clarity on forward guidance, with Slok defending Warsh against criticism.
• Trump's remark that rate decisions are made by a committee, not just the chair, is an important starting point for policy expectations.