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Joe discusses the recent employment data indicating that the Federal Reserve will likely increase its policy rate by 25 basis points in May. He notes a strong but cooling job market, with an unemployment rate at 3.5%, which is stable. Wages are growing at a year-over-year rate of 4.2%, but the pace is slowing, suggesting a reduced risk of a wage-price spiral. This implies a potential near-term peak in policy rates. Despite the slowdown, demand for workers remains high, especially in service industries, indicating a tight labor market and persistent inflation concerns.