US jobless claims fell to 201,000 last week, lowest level in nearly a year. The historically low layoffs suggests a healthy labor market for the near-term outlook. “The Fed says rate cuts from here on out will be gradual,” says Carl Weinberg, chief economist at High Frequency Economics. “Today’s claims data say that they need not be in a rush to ease monetary conditions. Fed policy is aimed at supporting the economy and the job market before a recession shapes up.”

US companies hired fewer workers than expected in December, according to the ADP Employment Report. “The labor market downshifted to a more modest pace of growth in the final month of 2024, with a slowdown in both hiring and pay gains,” says ADP’s chief economist.

Fed minutes point to slower pace of rate cuts. Central bank officials also discussed how President-elect Donald Trump’s policies could be a factor for inflation in the months ahead.

President-elect Trump is considering declaring national emergency to implement import tariffs, according to several sources. CNN reports: “The declaration would allow Trump to construct a new tariff program by using the International Economic Emergency Powers Act, known as ‘IEEPA,’ which unilaterally authorizes a president to manage imports during a national emergency.”

US 10-year Treasury yield continues to edge higher, trading near highest level April: