US hiring held firm in December capping weakest year of growth since the pandemic

Labor Market Overview - The US labor market added 50,000 jobs in December, marking the weakest year of growth since the pandemic, falling short of the expected 73,000 jobs [1] - Job additions for October and November were revised downwards, with a total of 76,000 fewer jobs added during those months [2] - The unemployment rate decreased from a four-year high of 4.6% in November to 4.4% in December [2] Economic Context - The labor market is described as being in a "no hire, no fire" phase, indicating subdued job growth despite ongoing employment [4] - Layoffs in December were nearly half of those recorded in November, suggesting a stabilization in job security [4] Federal Reserve Actions - The Federal Reserve is expected to consider the latest labor data in their upcoming policy meeting at the end of January, with current interest rates between 3.5% and 3.75% [5] - There is a likelihood of a pause in interest rate cuts, as indicated by the division among Fed members during their December meeting [6] - Fed Chair Jerome Powell expressed caution, hoping for stabilization in the labor market and a cooling of inflation, which rose 2.7% in November [7] Political and Economic Discourse - Treasury Secretary Scott Bessent urged the Fed to continue cutting rates to stimulate stronger economic growth [9] - There is a conflict between the Fed's cautious approach and the demands from Donald Trump and his economic advisers for lower interest rates to boost the labor market [8]