US May Job Gains Shift Fed Focus Toward Rate Hikes
The U.S. economy added 172,000 jobs in May, far exceeding economist expectations and keeping the unemployment rate steady at 4.3 percent. This robust labor market data is prompting Federal Reserve officials to prioritize inflation risks as investors increase bets on a rate hike later this year.
The United States added 172,000 jobs in May, more than doubling economist estimates and signaling labor market resilience. The blowout report pushed investor expectations for a December rate hike to 70%, up from 50% on Thursday. Strong hiring data complicates the debut of Federal Reserve Chair Kevin Warsh as persistent inflation risks overshadow previous concerns about employment weakness.
### Warsh Faces Hawkish Shift in Debut The May payroll gain marks the third consecutive month of consensus-beating growth, bringing the three-month hiring average back to pre-pandemic levels. Unemployment remained steady at 4.3% as an influx of workers entered the job market from the sidelines. Job gains for March and April were also revised higher, according to the U.S. Labor Department.
