Underlying US inflation probably cooled only a touch at the close of 2024 against a backdrop of a resilient job market and steadfast economy, supporting the Federal Reserve’s go-slow approach to further rate cuts.

The US economy defied expectations in December, adding 256,000 nonfarm payroll jobs, surpassing economists forecast of 164,000 and Novembers revised 212,000 increase. The unemployment rate dipped to 4.

US employers added a surprisingly strong 256,000 jobs in December, dimming hopes that the Federal Reserve will cut interest rates anytime soon — which sparked a sell-off on Wall Street. The blowout number from the US Bureau of Labor Statistics — a massive jump from the month before that economists took as a sign the job market is recovering from a mid-2024 stumble — pushed back traders’ bets for the central bank to cut rates to September