US May Jobs Report to Shape Warsh Debut as Fed Chair
Economists expect U.S. employers added 85,000 jobs in May as the labor market stabilizes following a period of low hiring. The data arrives as Federal Reserve officials shift their focus from employment risks toward containing inflation, which remains stuck well above the central bank's target.
The United States labor market faces a critical test on Friday as economists expect 85,000 new jobs for May. This follows an April gain of 115,000 and frames the opening policy debate for Kevin Warsh as Federal Reserve Chair. Investors are watching for signs that persistent inflation will force the central bank to pivot toward interest rate hikes.
### Warsh Faces Inflation Reality Warsh took over the Fed in the middle of May after arguing that productivity gains from artificial intelligence would allow for lower rates. However, inflation remains stuck at 3.5%, well above the 2% target. Warsh now faces a hawkish shift that has been gathering momentum among colleagues in recent weeks.
