US Economy Adds Sluggish 50K Jobs in December as Unemployment Dips to 4.4%; Trump Escalates Fed Attacks Ahead of Key CPI Data

Disappointing December Jobs Report

The US economy added only **50,000 jobs** in December, marking sluggish growth amid ongoing economic pressures.[2][5]

Downward revisions removed **76,000 jobs** from the prior two months' figures, highlighting a cooling labor market.[2]

On a positive note, the unemployment rate fell to **4.4%**, down 16 basis points after a spike in November.[2]

Inflation Data Looms with December CPI Release

Policymakers await the December consumer price index, due this week, for fresh insights into inflation trends.[1][3]

November's headline CPI dropped to **2.7%** year-over-year from 3.0% in September, with core at **2.6%**, the lowest since March 2021.[1][2]

However, data quality concerns arose from the government shutdown, which disrupted October collections and raised doubts about November's accuracy.[1]

Fed Cuts Rates but Divisions Persist

The Federal Reserve cut its federal funds rate by **25 basis points** in December to a **3.50%-3.75%** range.[2]

Three members dissented: one favored a 50-basis-point cut, while two preferred holding steady amid sticky inflation worries.[2]

Fed Chair Jerome Powell indicated reluctance for further cuts until inflation clearly moves toward the **2%** target.[3]

Trump Intensifies Pressure on Federal Reserve

President Trump has escalated criticism of the Fed, demanding sharper rate cuts to lower mortgage and government borrowing costs.[3][4]

The administration threatened a **10% cap on credit card interest rates** by January 20, prompting declines in bank and card stocks like Citigroup, Visa, and Mastercard.[4]

The Department of Justice served subpoenas to the Fed last Friday over Powell's testimony on a **$2.5 billion** office renovation, raising concerns about political interference.[3][4]

Upcoming Economic Indicators

• Retail sales, industrial production, and producer prices release this week.[1]
• Germany and Italy final December inflation data on Friday.[1]
• S&P Global Investment Manager Index survey Tuesday, gauging equity market sentiment.[1]

Broader Economic Context

Third-quarter 2025 GDP grew at a **4.3%** annualized rate, driven by **3.5%** consumer spending and **2.8%** business investment.[2]

Government shutdown impacts lingered into Q4, but fiscal stimulus could boost early 2026 growth.[2]

Consumer optimism showed improvement despite soft jobs data and heightened geopolitical tensions.[5]