Unemployment Slip Complicates Warsh's Fed Confirmation

The Bureau of Labor Statistics reported unemployment slipped to 4.3% in January, while payrolls rose at twice economists' expectations, according to Wednesday's release. That stronger-than-expected labor market complicates Donald Trump's nominee Kevin Warsh's push for near-term Federal Reserve rate cuts, as policymakers debate a higher neutral rate amid roughly 3% core PCE inflation and the Atlanta Fed's 3.7% Q4 GDPNow estimate.