Strong US Jobs Report Backs Case for Pause in Fed Rate Cuts
- Hiring unexpectedly picked up to 256,000, most in nine months
- Unemployment rate in December fell to 4.1%, wage growth slowed
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The latest snapshot of the US labor market affirmed what Federal Reserve officials have made clear in recent days: Interest-rate cuts are on hold for the foreseeable future.
Nonfarm payrolls increased 256,000 in December, the most since March — exceeding all but one forecast in a Bloomberg survey of economists. The unemployment rate unexpectedly fell to 4.1%, while average hourly earnings rose 0.3% from November, a Bureau of Labor Statistics report showed Friday.