Strong jobs reports bolster rate bets
223,000 jobs were created in the United States last month, and the unemployment rate fell further – giving the Federal Reserve further motivation to raise rates. According to data released by the Bureau of Labor Statistics this morning, the unemployment rate dropped to 3.5 percent in December, and the participation rate moved up to 62.3 percent from 62.1 in the prior month, indicating that some workers are coming off the sidelines. Average hourly earnings rose 4.6 percent year-over-year, slower than expected, but still well beyond levels that would suggest inflation pressures have receded. Ahead of the release, investors were positioned...