Strong December Jobs Report Challenges Case for Fed Rate Cuts
• December jobs report shows continued strength in labor market, complicating case for Fed rate cuts • Unemployment steady at 3.7%, below Fed projections; 216K jobs added, above expectations • Metrics like long-term unemployment duration and labor force participation still below pre-pandemic levels • Drop in labor force participation driven by 55+ cohort exiting workforce, straining labor supply • Wage growth accelerated in December; report doesn't support case for lowering rates, may keep rates closer to previous Fed estimates