Not to brag, but we nailed it.

We told you Monday the Federal Reserve was likely to keep interest rates unchanged for now, with a hike to come depending on how things shake out with stubbornly high inflation and war in Iran. Sure enough, Fed officials held steady today, but three governors wanted to hike. It’s the first time officials have split that way since 2016. New-ish chair Kevin Warsh called it a  “good family fight.”

The central bank has a dual mandate: price stability and full employment. We’ll talk a bit about both in today’s newsletter, starting with a relatively strong job market that’s nonetheless vexing new college grads. — Tony Wagner, newsletter editor

Gen Z is inheriting a tough job market.

The candidate pool is flooded with graduates seeking similar work. Artificial intelligence is changing the game for employers and job seekers alike . And in some places, like Florida, unemployment is outpacing the national average.

Brenda Abreus, 22, said those factors combined are making it difficult to find work as a recent college graduate.

“I haven’t found anything in particular for myself just yet, so for right now, I have been volunteering,” she said.

She graduated in the spring with a bachelor’s degree in media production and management from the University of Central Florida — and a distaste for AI.

In a moment that went viral on social media during her graduation ceremony in May, Gloria Caulfield, a commencement speaker, was loudly booed for praising AI as “the next Industrial Revolution.”

Jacksonville-based labor analyst Ron Hetrick with firm Lightcast said this moment reflects the strong reaction some Gen Z job seekers have to a labor market that’s growing more reliant on AI.

Things can feel especially bad for college graduates who are noticing companies invest money into tokens, or how AI companies bill their usage, over new hires, Hetrick said. “The money I would have hired you with I'm buying, you know, more tokens, so that I can see if AI can do something for my company.”

Research from fintech company Ramp found that one in three businesses it tracks is spending more than $10,000 a month on AI.

AI use is also impacting the way job seekers apply for work.

The 70 million Americans on Medicaid will face new work requirements from the Trump administration starting next year, which could jeopardize coverage for millions. Dozens of states are suing to block these rules, claiming a rushed rollout will cause eligible patients to lose coverage. Velasquez has been through that before.

Ordering in has gotten expensive. Inflation is a part of it, but so are the fees from food delivery apps, which are essentially a “private taxi for your burrito.” Well how about a private flight?

The Federal Aviation Administration recently certified DoorDash to run a commercial drone delivery business. The company hasn’t said when it will start testing takeout flights, but TechCrunch notes DoorDash delivery bots are already rolling around some cities.

Where does that leave the humans making DoorDash runs? Gig economy companies redefined what “employment” looks like for millions of people, and we’re starting to see those jobs automated away.