BREAKINGVIEWS-Summer heat will make Warsh sweat

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Gabriel Rubin

WASHINGTON, June 10 (Reuters Breakingviews) - A plodding labor market, productivity growth, and no new tariffs could have allowed Federal Reserve rate cuts. Instead, new chair Kevin Warsh faces 4.2% inflation and strong hiring amid an energy crunch. A selloff after a hot jobs report shows investors see hikes coming soon.

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CONTEXT NEWS

The Consumer Price Index increased 4.2% in the 12 months through May, the ​largest gain since April 2023, the Labor Department's Bureau of Labor Statistics said on June 10. The ​CPI advanced 3.8% year-on-year in April. Prices increased 0.5% on a monthly basis after climbing ⁠0.6% in April.

The U.S. economy posted a third straight month of strong job gains in May with 173,000. Revisions to prior months added 93,000 more jobs in March and April than previously estimated and the unemployment rate held at 4.3% for a third consecutive month.


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