New Delhi, Feb. 13 -- The latest Bureau of Labor Statistics report showed that the unemployment rate slipped to 4.3% in January, from a prior 4.4%, as US payrolls expanded at twice the rate that economists had been expecting. While that's great news for workers, it will make life a lot more challenging for Kevin Warsh, US President Donald Trump's pick to become the next chair of the Federal Reserve.

Trump wants his nominee to slash interest rates, but Warsh's Fed colleagues are likely to balk if the labour market continues to hold up this well, creating the conditions for a volatile first year on the job, starting in May. Although outgoing Chair Jerome Powell has faced similar pressure, Warsh will be seen in markets as an unproven and le...