US labor market cooled in November as firms cut 32,000 jobs, hitting small businesses hardest, while wage growth slowed to 4.4% year over year, ADP said.
Expectations for a December Fed rate cut are rising despite officials' divisions. Powell says the move isn't assured, but markets still expect easing before 2026.
Core inflation stayed at 2.9%, supporting rate cuts as spending and income rose. Tariff effects were limited, and Trump hasn't applied the 10% Canada duty.
In August, the Consumer Price Index (CPI) rose faster than expected, and unemployment claims surged, adding new policy pressure on the Federal Reserve.
