The latest U.S. payroll data has shifted market expectations for Federal Reserve rate cuts, with traders now forecasting a single reduction in October 2025, according to Bloomberg. Earlier projections suggested a possible rate cut as soon as June or July 2025.
The labor market showed resilience with 256,000 new jobs added in December, surpassing economists' expectations of 155,000. The unemployment rate dipped to 4.1%, slightly better than the projected 4.2%, indicating sustained recovery and growth.
December’s nonfarm payroll increase highlights a U.S. labor market gaining momentum, moving past distortions caused by weather or strikes. The rise in average hourly earnings further supports this trend, growing 0.3% from November to $35.69, marking a 3.9% year-over-year increase.
These strong figures suggest the U.S. economy is less reliant on monetary policy, potentially reinforcing the Federal Reserve’s cautious approach to interest rate adjustments. The robust jobs data has also impacted financial markets, with stock futures experiencing sharp declines as traders brace for a slower pace of rate cuts in the coming months.
With improving employment conditions and wage growth, the Federal Reserve appears set to prioritize economic stability over immediate monetary easing, reshaping market expectations well into 2025.


Thailand Inflation Remains Negative for 10th Straight Month in January
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm
BOJ Holds Interest Rates Steady, Upgrades Growth and Inflation Outlook for Japan
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
Jerome Powell Attends Supreme Court Hearing on Trump Effort to Fire Fed Governor, Calling It Historic 



