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In the discussion, Joe points out that the employment data indicates the Federal Reserve will likely raise its policy rate by 25 basis points in May. The unemployment rate stands at a low 3.5%, reflecting a strong yet cooling job market. While this is a positive sign, it isn't sufficient for the Fed to declare a peak. Wages have increased, with a year-over-year rise of 4.2% at a 0.3% monthly rate. Joe anticipates a three-month average annualized pace indicating a reduced risk of a wage-price spiral, which suggests a potential near-term peak in the policy rate. Despite the tight labor market, there remains a strong demand for workers across various service industries.