Consumer Headlines: A look at the jobs report, the stock market decline, and disaster relief

ROCHESTER, N.Y. — Friday’s Consumer Alert takes us into a world reminiscent of Alice in Wonderland, where what’s up is down in the economy. The latest jobs report shows an unexpected surge, while the stock market took a hit.

The jobs report came out Friday, and it was a whopper. The U.S. added 256,000 jobs in December, far exceeding the 153,000 economists anticipated.

Unemployment fell from 4.2% to 4.1%, indicating a hotter-than-expected economy. This raises concerns about inflation, which could prompt the Federal Reserve to increase interest rates to stabilize the economy.

The stock market fell following the strong jobs report, and Deanna Dewberry describes it as an “Alice in Wonderland effect” where job growth leads to a stock market decline.

Fears of inflation also impacted the Consumer Sentiment Index for January, which dropped as Americans anticipate a 3.3% annual price increase, up from last month’s expectation of 3%.

Nearly a third of surveyed consumers mentioned concerns about tariffs promised by President-elect Trump, believing these could lead to higher prices.

In other news, as wildfires rage across Southern California, the Education Debt Consumer Assistance Program reminds borrowers that they may qualify for natural disaster forbearance on student loans if affected by extreme weather. This allows for a 90-day payment break, though interest will continue to accrue.

In many cases, you can get 30-day extensions, but forbearance can’t last more than a year after the date of the disaster.

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