US Economy Adds 50K Jobs in December as Unemployment Dips to 4.4%; Trump Heads to Detroit Amid CPI Data Release

December Jobs Report Shows Modest Gains

The US economy added **50,000 jobs** in December, falling short of the 60,000 forecast and below November's revised 56,000 figure. Unemployment dropped to **4.4%** from 4.5%, with employment rising by 232,000 to 163.99 million.[3]

Gains concentrated in food services (27,000 jobs), healthcare (21,000), and social assistance (17,000), while retail lost 25,000 positions. Revisions cut October and November totals by 76,000 combined.[3]

Trump's Detroit Economy Speech Looms

President Trump travels to Detroit today for a major economy-focused speech, timed just after the **December CPI inflation data** release at 8:30 a.m. November's CPI came in at 2.7%, bolstering affordability messaging.[5]

Advisors push economic topics amid distractions like Fed tensions, with one source noting the administration's struggle to highlight tax cut benefits over drama.[5]

Consumer Sentiment and Inflation Expectations

University of Michigan's January consumer sentiment rose to **54.0**, beating forecasts, though still 25% below January 2025 levels due to price and labor concerns. Year-ahead inflation expectations held at **4.2%**, with five-year outlook up to 3.4%.[3]

• Sentiment gains strongest among lower-income groups.
• Labor force participation dipped to 62.4%.[3]

Bank and Market Outlooks for Early 2026

Bank of America CEO projects **2.4% US growth** in 2026, citing optimism but caution on consumption and geopolitics.[6]

Goldman Sachs forecasts robust expansion from tax cuts, wage growth, and AI productivity, with core PCE inflation at 2.1% and two Fed rate cuts in June and September. Unemployment seen stable at 4.5%, with risks of jobless growth.[4]

Trade Developments and Market Reactions

US and Taiwan near a trade deal lowering tariffs to 15% and committing Taiwan Semiconductor to five more Arizona facilities.[5]

Equities hit records on softer jobs data, with Europe rallying on miners and chips.[3] Industrial production rose 0.2% in November, beating expectations.[1]

• State Department revoked a record **100,000 visas** since Trump's return.[5]
• Q3 GDP grew at **4.3% annualized**, highest in two years.[1]