Federal Reserve Expected to Lower Interest Rates After Strong Job Gains

November jobs report shows labor market resilience, fueling predictions of a December rate cut as inflation concerns persist.

The U.S. economy added 227,000 jobs in November, surpassing expectations and rebounding from October's hurricane-affected slowdown.
Unemployment rose slightly to 4.2%, while job growth averaged 150,000 per month over the past four months, reflecting a gradually cooling labor market.
Financial markets now estimate an 89% likelihood of a 0.25% interest rate cut at the Federal Reserve's December 17-18 meeting, potentially bringing rates to a 4.25%-4.50% range.
Federal Reserve officials remain divided, with some advocating cautious rate reductions due to persistent inflation risks and near-full employment conditions.
Analysts predict additional rate cuts in 2025 but anticipate a pause in early 2024 as the Fed evaluates inflation and economic stability.