U.S. Job Growth Falls Short in January
In January, the U.S. job market experienced a downturn, with job growth not meeting expectations. According to the Bureau of Labor Statistics, the economy added a total of 143,000 jobs in January. This figure was significantly below forecasts, which had predicted an increase of 170,000 jobs. Additionally, this number reflects a decline from the 256,000 jobs added in December.
On a more positive note, the unemployment rate showed improvement, falling to 4%, which was lower than the anticipated 4.1% and also down from December’s rate of 4.1%. This decrease in unemployment suggests some resilience in the labor market despite the lower job growth figures.
In the world of cryptocurrency, the price of bitcoin (BTC) saw an initial surge, climbing to $97,500, even as the DXY index rose to 107.8. This fluctuation reflects ongoing volatility and investor sentiment in the digital currency market.
Looking ahead, the Federal Reserve has made significant adjustments to its monetary policy, cutting its benchmark federal funds rate by a total of 100 basis points over the last four months of 2024. Investors had been anticipating similar actions in 2025. However, a series of strong economic indicators and inflation data have prompted the Federal Reserve to reconsider its dovish stance, leading traders to reassess the likelihood of further policy easing. Prior to the release of the latest job numbers, the CME FedWatch tool indicated only a 15% chance of a rate cut in March.
