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Joe discusses the employment data indicating that the Federal Reserve (Fed) is set to raise its policy rate by 25 basis points during its May meeting. Despite a strong job market, marked by a 3.5% unemployment rate, this doesn’t indicate a peak in economic conditions yet. Wage growth from a year ago stands at 4.2%, and the three-month annualized pace suggests a lower risk of wage-price inflation, which is positive for near-term policy rate peaks. However, demand for workers remains high across various service industries, indicating a tight labor market despite cooling trends.