December’s nonfarm payrolls increased by 223,000 for the month, above the Dow Jones estimate for 200,000, but marked a decrease from the 256,000 gains in November. Moreover, wage growth was less than expected, and the unemployment rate fell to 3.5%.
While inflation cooled off for the third consecutive month in December, it still remains far beyond the Fed’s 2% target. Fed officials in December projected that the current rate of 4.25%-4.50% range would rise to just over 5% by the end of 2023 and likely remain there for some time.
