Hot jobs report puts Fed cuts further out of reach as Chair Warsh faces policy tests (opens original article in a new tab)

A strong jobs report increased uncertainty around Federal Reserve policy under new Chair Kevin Warsh, with market expectations shifting away from rate cuts and towards potential hikes, while Warsh faces internal challenges from Fed officials on inflation measures and policy approaches.

• Strong May jobs report reduces likelihood of near-term interest rate cuts.
• Fed officials challenge Warsh's views on inflation measures and policy frameworks.
• Market expectations now favor rate hikes over cuts by year-end.