The labor market in the U.S. may not be as robust as the November jobs report would suggest at first glance. The rebound in payroll jobs allayed fears of a rapid deterioration in the labor market, but it also likely overstates its strength. The labor market is no longer offering the large wage premium for job hopping that it was just 12 months ago. It's indicative of a labor market that has come into balance and may no longer be a meaningful source of inflationary pressure at the margin. We maintain our base case for now that the Fed will deliver a 25-bp cut at next week’s policy meeting, before it pauses and reassesses. The tradeoff between the unemployment rate and inflation is starting to get interesting as we approach a new year (and the start of a new administration).