Pressure Mounts on Rookie Chair Warsh as Jobs Fuel Fed-Hike Bets

The US labor market is back on its feet, strong employment data showed Friday, stoking concerns of another inflation sting and bolstering arguments from some Federal Reserve officials that they may need to raise interest rates later this year.

For newly installed Fed Chairman Kevin Warsh, the changing outlook is an early test of his ability to convince markets he has what it takes to contain prices, while fending off pressure from the White House for cheaper borrowing costs.

When he chairs his first policy meeting on June 16-17, the easy part, say Fed watchers, will be dropping any ...