U.S. payrolls rose by 172,000 in May, much more than expected; unemployment at 4.3%

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13. Hot jobs report puts Fed cuts further out of reach as Chair Warsh faces policy tests

Federal Reserve
Hot jobs report puts Fed cuts further out of reach as Chair Warsh faces policy tests

Published Fri, Jun 5 2026 1:44 PM EDT
Updated Fri, Jun 5 2026 3:09 PM EDT
Jeff Cox
@JeffCoxCNBCcom
@jeff.cox.7528

KEY POINTS
• Another big jobs report in May has swept aside the possibility of interest rate cuts anytime soon — and in the process underscored the tricky policy path ahead for new Fed Chair Kevin Warsh.
• Warsh's dilemma runs deeper than the simple calculus of where rates are headed.
• Multiple central bank officials have spoken in public and challenged, without mentioning his name, several core assumptions and positions that Warsh has held since he emerged as a candidate for the chair's seat.


New Chairman of the Federal Reserve Kevin Warsh arrives during a swearing in ceremony in the East Room of the White House in Washington, DC on May 22, 2026.
Aaron Schwartz | Afp | Getty Images

Another big jobs report in May has pretty much swept aside the possibility of interest rate cuts anytime soon — and in the process underscored the tricky policy path ahead for new Federal Reserve Chair Kevin Warsh.

The chance of rate reductions already had been on life support heading into Friday's nonfarm payrolls report.

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