Inflation holds steady, affirming Fed focus on weak job market

Group 1 - The Federal Reserve cut the main interest rate by a quarter point three times from September to December last year, with the current federal funds rate ranging between 3.5% and 3.75% [3] - U.S. employers added only 50,000 jobs last month, falling below expectations, indicating a cooling labor market [3] - The unemployment rate decreased to 4.4% from 4.5% in November, but remains above the 4% level seen in January 2025 [4] Group 2 - Core inflation, excluding food and energy, rose by 0.2% in December and 2.6% for the full year, matching a four-year low [7] - The overall Consumer Price Index (CPI) increased by 0.3% for the month and 2.7% for the full year, with shelter costs contributing significantly to the monthly rise [7] - The lower inflation figures allow the Federal Reserve to prioritize labor market stabilization over immediate price pressure concerns [7]