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In the discussion on the employment situation, it is noted that the Federal Reserve is expected to raise its policy rate by 25 basis points in May. The unemployment rate stands at 3.5%, indicating a strong but cooling job market. While this is a positive sign, it is not enough for the Fed to confirm a peak in rates. Wages have seen an annual rise of 4.2%, with an anticipated three-month average annualized pace suggesting that the risk of a wage-price spiral has decreased. Despite this, demand for workers remains high across various service industries, indicating a tight labor market and persistent inflation concerns.