Fed's Mouthpiece: Non-Farm Payroll Report Provides Ample Justification for Fed to Hold Rates Steady This Month

Odaily News "Fed's mouthpiece" Nick Timiraos wrote in his latest article: "Tonight's December employment report provides ample justification for Fed officials to maintain a wait-and-see stance at this month's meeting. Total non-farm payrolls grew by only 50,000, and the three-month average for private sector hiring fell to 29,000, the second-lowest growth rate for the year. This sluggish pace of job growth highlights the dynamic of 'slow hiring, slow firing' in the 2025 labor market. However, the decline in the unemployment rate temporarily alleviates extreme concerns about a worsening labor market. It was precisely this concern that prompted the Fed to cut interest rates consecutively at its past three meetings. The report solidifies market expectations that the Fed will hold rates steady at its January 27-28 meeting, but the weak hiring data also ensures that the debate over the health of the labor market is far from over." (Jin10)