Labor Market Not a Source of Inflationary Pressure, Latest Report Shows The unemployment rate ticked down to 4.2 percent, but average hourly earnings were steady, giving Kevin Warsh, the Federal Reserve chairman, room to focus on fighting inflation. At his first news conference as head of the Federal Reserve, Kevin Warsh said that establishing price stability would be pursued “unambiguously and unanimously.”Credit...Anna Rose Layden for The New York Times July 2, 2026Updated 9:54 a.m. ET Kevin M.