FEBRUARY 16, 2026 – – STRONG JOBS REPORT FOR JANUARY, INFLATION EASES
The Labor Department reported January’s hiring and employment data, as well as the latest inflation data. The releases were delayed due to the partial government shutdown
There were 130,000 new jobs created in January, above expectations of 70,000 new positions, and well above the 50,000 reported in December. The unemployment rate fell to 4.3 percent from 4.4 percent a month earlier. The data is particularly notable, since, after revisions, there were but 181,000 jobs created in all of 2025.
It is too early to tell, but this could be a sign the labor market is picking up after tariffs, the immigration crackdown and government layoffs have worked their way through the economy. The recent rise in the GDP may now push companies into reinvesting as there is a more optimistic outlook.
Inflation eased in January coming in at 2.4 percent, 0.3 percent less than December and at the lowest since May 2025. Core CPI was 2.5 percent, meeting expectations. The improvement in inflation has raised hopes for rates to be cut.
The Fed will next meet mid-March when rates are not expected to change. No rate adjustments are anticipated until the summer, however, after the encouraging inflation data, the CME raised the likelihood of a June rate cut to 83 percent.