Blowout Jobs Numbers Just Made Kevin Warsh's Job Much Harder -- and Put a Showdown With Trump in Motion
The new Fed chair is caught between the proverbial rock and a hard place.
Blowout Jobs Numbers Just Made Kevin Warsh's Job Much Harder -- and Put a Showdown With Trump in Motion
Overview
Serving as the Federal Reserve Chair isn't easy. Kevin Warsh is already finding that out. And he hasn't even chaired his first Federal Open Markets Committee (FOMC) meeting yet.
Actually, Warsh's job just got much harder. The U.S. Bureau of Labor Statistics released its May employment numbers last week. Nonfarm payrolls rose to a seasonally adjusted 172,000, more than doubling the Dow Jones (the company, not the stock index) consensus estimate of 80,000.
Details
This blowout jobs report makes it very difficult for Warsh to cut interest rates. Instead, it boosts the chances that a rate increase will be needed. An eventual showdown between the new Fed chair and President Trump now appears to be in motion.
Source
Originally published at www.fool.com.
