May job growth putting to bed fear around job loss due to AI, says Apollo's Torsten Slok

• May jobs report shows strong job growth (172K jobs), driven by tailwinds from AI spending and the Bipartisan Infrastructure Law.
• The economy is exhibiting signs of 'overheating' with strong job creation and capital expenditure, rather than the previously feared stagflation.
• This economic momentum, combined with inflation pressures from tariffs, energy, and the AI boom, creates a complex challenge for the Fed, potentially leading to a removal of easing bias and even rate hikes.

Torsten Slok of Apollo Global Management discusses the May jobs report, highlighting strong job creation driven by the AI spending boom and the Bipartisan Infrastructure Law. He argues that the economy is showing signs of 'overheating' rather than stagflation, posing a complex challenge for the Fed which may lead to a hawkish shift and potential rate hikes later this year due to upward inflationary pressures.