Nightmarish labor market finally shows signs of letting up—and ‘vindication’ for Jerome Powell

Fed Chair Jerome Powell testifies before the Senate Committee on Banking, Housing, and Urban Affairs during a hearing to "examine the Semiannual Monetary Policy Report to the Congress" on Capitol Hill on June 25, 2025 in Washington, DC. Powell says that the central bank will wait for clearer economic signals on the effects of President Donald Trump's tariffs on the economy before cutting interest rates, despite pressure from the President and divisions among Fed officials. (Credit: Kent Nishimura—Getty Images)

If 2025 was the year of the labor market’s long winter, January provided the first thaw—along with a bit of a victory lap for outgoing Federal Reserve Chair Jerome Powell.

U.S. employers added 130,000 jobs in January, roughly double economists’ expectations and the strongest headline print in months, offering an unexpectedly upbeat start to a year that made Maria Bartiromo exclaim “Wow,” on Fox Business.