02/07/2025

U.S. Growth Declines in January

However, the unemployment rate stands at 4.0 percent

U.S. job growth slowed more than expected in January after robust gains in the prior two months, but a 4.0 percent unemployment rate probably will give the Federal Reserve cover to hold off cutting interest rates at least until June.

The Labor Department's closely watched employment report on Friday also showed strong wage growth last month, with average hourly earnings surging, which should keep consumer spending supported. Labor market resilience is the driving force behind the economic expansion.

"This morning's report may be considered a Goldilocks report, not too hot and not too cold," said Jeffrey Roach, chief economist at LPL Financial. "An unemployment rate at 4 percent is considered very low, giving the Fed reason to keep fed funds unchanged in the near term."

Please select this link to read the complete article from Reuters.