U.S. Economy Adds 50,000 Jobs in December as Mortgage Rates Drop Below 6% Amid Trump Policy Moves

Modest Job Growth in December

The U.S. economy added **50,000 jobs** in December, according to Labor Department data released on Friday. The unemployment rate saw a slight decline, providing a positive signal despite the modest pace of hiring.[3]

This comes after earlier concerns over soft job growth, with policymakers closely watching labor market trends ahead of key inflation data.[1]

Mortgage Rates Fall Sharply

Mortgage rates have dropped below **6%** for the first time since February 2023. The decline follows President Trump's order for his representatives to purchase **$200 billion** in mortgage bonds to address rising living costs.[3]

Economists note this move aims to ease affordability pressures on homebuyers, potentially boosting the housing sector in early 2026.

Trump Pushes Credit Card Rate Cap

President Trump called for a **one-year 10% cap** on credit card interest rates. He stated that companies failing to comply would be in violation of the law.[3]

This proposal targets consumer debt burdens, with Trump emphasizing affordability as a core economic priority.

Upcoming Inflation Data Looms Large

The Labor Department will release the **December CPI inflation report** on Thursday. Recent data showed headline inflation at 2.7% in November, down from 3.0% in September, though a government shutdown raised questions about data quality.[1][3]

Federal Reserve officials remain divided, with no rate cut widely expected until June after three prior 25 basis-point reductions.[1]

Government Funding Tensions Rise

• The House approved a partial government spending bill, funding the Commerce and Justice Departments.[3]
• Without further action, funding lapses at month's end, echoing prior shutdown impacts on data collection.[1][3]

House Minority Leader Hakeem Jeffries indicated Democrats may pursue impeachment of Homeland Security Secretary Kristi Noem if they gain midterm majorities.[3]

Other Economic Indicators This Week

Key releases include retail sales, industrial production, and producer prices.[1] OPEC's monthly report and EU-Mercosur trade deal signing add global context.[3]

In the labor market, prime-aged workers with disabilities show varied participation compared to pre-pandemic levels.[4]