NEC Director Kevin Hassett on May jobs report: This is a job market that's hitting on all cylinders

• May nonfarm payrolls (+172K vs. +80K est.) and April revisions (+179K from +115K) indicate strong positive momentum in the job market, which Hassett described as 'hitting on all cylinders'.
• Hassett believes the job market boom is supply-side driven, implying that inflation is not a direct threat and the Fed can 'watch the inflation numbers and wait a while' before any action, potentially even cutting rates.
• He noted that companies utilizing AI are experiencing significant growth and increased employment, while those not adopting AI are stagnating, suggesting AI is a job creator for early adopters.
• Hassett also addressed concerns about oil prices and inventories, stating there are 'very ample inventories' and that markets will adjust to any disruptions.

National Economic Council Director Kevin Hassett presented a bullish outlook on the May jobs report, highlighting strong employment growth and upward revisions. He attributed this to supply-side policies and suggested the Federal Reserve should not hike rates, possibly even considering cuts. He also discussed ample oil inventories and the positive impact of AI on job creation for adopting companies.