
The Bureau of Labor Statistics released its December jobs report on January 10, revealing that 256,000 jobs were added in that month, over 100,000 more than the 155,000 predicted by analysts.
The Federal Reserve cut federal interest rates three times to close out 2024, and with last month’s positive job report, there was concern that future cuts may not be as imminent. However, in a meeting on January 8, Federal Governor Christopher Waller still expects rate cuts to happen. “I believe that inflation will continue to make progress toward our 2 percent goal over the medium term and that further [interest rate] reductions will be appropriate.”
While rate cuts may still happen this year, Nancy Vanden Houten, lead U.S. economist at Oxford Economics, thinks they will occur at a much slower pace. “The solid December employment report will solidify the Fed's intentions to proceed with the slower pace of interest rate cuts it signaled at its December meeting."
With Donald Trump being sworn into the oval office next Monday, federal policymakers will wait and see what his first moves are as president.