Donald J. Trump @realDonaldTrump

The U.S. economy added 172,000 jobs in May, more than double economists' expectations. That one report may have completely changed the conversation around interest rates. Just weeks ago, investors were debating when the Federal Reserve would start cutting rates. Today, markets are pricing in a roughly 70% chance of a rate hike by December. Why? Because the Fed has a new problem. The labor market remains strong: 📈 172,000 jobs added 📈 Unemployment held steady at 4.3% 📈 Prior months were revised higher But inflation is still running well above the Fed's 2% target. For the first time in months, some Fed officials are openly discussing whether rates may need to move higher instead of lower. The biggest challenge facing new Fed Chair Kevin Warsh isn't a weak economy. It's figuring out how to bring inflation down without slowing a labor market that refuses to crack. The next inflation report could determine whether this jobs report was a one-off surprise—or the start of a much more hawkish Fed.