Jobs report may show uptick in hiring as Fed cuts rates

A U.S. jobs report due Friday is expected to show modest hiring gains while the Federal Reserve has cut interest rates in recent months to support the labor market.

A monthly government jobs report is scheduled for Friday and is widely watched as a near-term gauge of the U.S. labor market. The Federal Reserve has cut interest rates at several recent meetings to address weakening hiring. Economists surveyed expect hiring to have risen modestly in December and the unemployment rate to tick down. Key points: - Economists expect December payrolls to have increased to about 73,000 jobs from 64,000 the prior month, and the unemployment rate to move from 4.6% to 4.5%, as reported in the article. - The article reports that the Fed cut its benchmark interest rate at three consecutive meetings beginning in September; the rate now stands between 3.5% and 3.75%. - The Commerce Department's initial estimate showed annualized U.S. GDP growth of 4.3% in the third quarter, following 3.8% in the prior quarter, according to the article. - The article notes inflation eased in November but remained roughly a percentage point above the Fed's 2% target. Summary: The upcoming jobs report will provide an immediate read on hiring as policymakers weigh the effects of recent rate cuts. Officials have reduced the policy rate and futures markets are pricing additional cuts this year, and the Friday report is the next scheduled data point for assessing labor-market momentum.