US Job Growth Surpasses Expectations, Fed Rate Cuts Delayed
- The US economy added 256,000 jobs in December, exceeding the expected 164,000.
- The unemployment rate fell to 4.1%, better than the projected 4.2%.
- Goldman Sachs forecasts Fed rate cuts in June and December 2025, and June 2026.
- Bank of America suggests the cutting cycle is over following strong job data.
- Citigroup economists note cooling price and wage inflation amid strong employment.
The US economy’s addition of 256,000 jobs in December has led to revised predictions for Federal Reserve rate cuts, now anticipated by Goldman Sachs to occur in mid-2025 rather than March this year. This adjustment follows a stronger-than-expected labor market performance and a decrease in unemployment rates.
