Geopolitical events
On June 5, 2026, the U.S. Bureau of Labor Statistics reported that nonfarm payrolls increased by 85,000 in May, a significant decline from the 115,000 jobs added in April. This data release marks the first major economic test for the newly appointed Federal Reserve Chair, Kevin Warsh. While the national unemployment rate remained stable at 4.3%, the "Warsh Fed" is expected to maintain a hawkish posture, prioritizing the mitigation of inflationary pressures linked to the ongoing maritime conflict in the Middle East over labor market expansion. Analysts suggest that the central bank may implement further interest rate hikes in the third quarter to stabilize prices amidst global energy volatility.