Blowout Jobs Numbers Just Made Kevin Warsh's Job Much Harder -- and Put a Showdown With Trump in Motion

May payrolls surge makes Warsh's job harder as Fed chair, with nonfarm payrolls rising 172,000 in May, more than twice the 80,000 Dow Jones estimate. Leisure and hospitality added 70,000 jobs and local governments 55,000, while overall inflation remained elevated. The April CPI was 3.8%, underscoring sticky price pressures. The May inflation data due June 10 will sharpen the Fed path, with CME FedWatch showing a hold next week at 98.2% and rising odds of a rate increase through 2026 into 2027. The political backdrop, including President Trump's push for lower rates, underscores the tension between growth, inflation and policy.