U.S. labor market data continue to show strength towards the end of last year, in line with job openings data that turned around to rise consecutively in October and November, RBC Economics’ economists note.

Fed set to hold this month

“Concerns over substantial weakening in the jobs market have continued to ease, leaving the Fed with much less urgency to cut interest rates.”

“The Fed already pivoted to a more gradual easing cycle in their last meeting In December. We think the odds of an additional rate cut this month are low, and the central bank will more likely be holding rates steady at the current 4.25% - 4.5% range throughout 2025.”