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

• July nonfarm payrolls were -23K vs. an estimated +83K, with specific negative prints in local government education and leisure/hospitality potentially influenced by seasonal adjustments and the World Cup.
• Average hourly earnings showed the smallest year-over-year gain since May 2021, and household employment declined, indicating a softening labor market.
• The market interpreted the weaker jobs data as a signal for the Fed to potentially slow or delay rate hikes, leading to a rally in stocks and a drop in Treasury yields.
• The next critical data point for the Fed's decision-making will be the upcoming CPI report, and clarity on forward guidance is expected from Jackson Hole.

Torsten Slok of Apollo Global Management discusses the July jobs report, which showed a disappointing -23K nonfarm payrolls. He notes statistical quirks that might have influenced the number, but acknowledges a general softening in the labor market. The market reacted positively, with stocks rising and Treasury yields falling, as it implies a less aggressive Federal Reserve, pushing out expectations for future rate hikes.