Senate Passes Russia Sanctions Bill Championed by Graham | Balance of Power 8/7/2026

Summary

Balance of Power covers the July jobs report showing a surprise payroll decline and falling unemployment rate. Guests analyze the implications for Fed policy under Chair Kevin Warsh, with bond strategist Tom Tzitzouris forecasting long-end Treasury weakness due to balance sheet reduction. The Senate passes a Russia sanctions bill expanding tariff authority, while Iran tensions and defense procurement challenges, including Army Secretary Dan Driscoll's new testing initiative, are discussed.

• July nonfarm payrolls unexpectedly fell by 23,000; unemployment rate ticked down to 4.1% due to lower participation.
• Markets initially saw the report as removing imminent rate hike pressure, but CPI next week may reverse that.
• Tom Tzitzouris argues the Fed will shrink its balance sheet, driving long-end yields higher with 20-year bonds most vulnerable.
• Senate passed the Russia sanctions bill 86-11, expanding presidential tariff authority on Russian and Iranian energy.
• Confirmation of Todd Blanche as Attorney General advances after Senator Cassidy's surprise yes vote.
• Army Secretary Driscoll unveils program to accelerate weapons testing and procurement amid concerns over munitions stockpiles.
• Iran tensions persist with unclear progress on reopening the Strait of Hormuz, weighing on defense and energy outlooks.