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Joe discusses the recent employment data indicating that the Federal Reserve is expected to hike its policy rate by 25 basis points in May. Key takeaways include an unemployment rate of 3.5%, reflecting a strong but cooling job market. While the job market remains tight with high demand for workers, the wage growth has shown a year-over-year increase of 4.2%, with a 0.3% rise noted. This data suggests a possible three-month annualized average in wage growth, indicating that the risk of a wage-price spiral is diminished, which is positive for achieving a near-term peak in the policy rate. The overall labor market remains tight, particularly across service industries.