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In a recent discussion about the employment situation, it was noted that the Federal Reserve is expected to raise its policy rate by 25 basis points in May, driven by a low 3.5% unemployment rate. While the job market remains strong yet shows signs of cooling, this is essential for the FED but not sufficient for declaring a peak. Wage growth has slowed to 4.2% year-over-year and is projected to trend down, reducing the risk of a wage-price spiral. Demand for workers remains strong across various service industries, contributing to a tight labor market and inflation concerns. Overall, the labor market indicators suggest a potential near-term peak in policy rates.