Federal Reserve Bank of Chicago President Austan Goolsbee said the latest jobs report suggests the labor market is stabilizing at full employment and is not a sign of an overheating economy.

The U.S. dollar rallied across the board on Friday after data showed the world's largest economy created more jobs than expected last month, reinforcing expectations that the Federal Reserve will pause its rate-cutting cycle at its policy meeting later this month.

Wall Street stocks slumped and the dollar climbed on Friday as a robust US jobs report dimmed hopes of further interest rate cuts.

The U.S. labor market cooled substantially in 2024, as employers sharply curtailed hiring and workers faced increasing difficulty finding jobs, although there are no signs of a recession.

The U.S. added 256,000 jobs and the unemployment rate ticked down to 4.1 percent in December, according to data released Friday by the Labor Department. The December jobs report showed the U.S.