The Federal Reserve is not concerned about the US job market’s performance in December, as it is already monitoring for a potential fissure.

The US job market has been robust, with payrolls report looming large over New Year markets, pointing to the first weekly loss in global stocks since October.

Last week saw a two-month low in the number of Americans submitting new claims for unemployment benefits, ADP’s private sector payrolls climbing by 164,000, and a 24% decline in job cutbacks announced by US-based firms.

Payrolls are expected to grow by 170,000 jobs, compared to November’s 199,000 jobs.

A slight increase in the unemployment rate to 3.8% is anticipated.

Futures markets have progressively reduced bets on the degree of 2024 Fed easing.

The employment picture should highlight prospects for a “soft landing” for the economy, but the attitude of the market is still dominated by the interest rate picture.