The January jobs report revealed a drop in the unemployment rate to 4%, accompanied by payroll gains of 143,000. A Fed interest rate cut in March is now very unlikely.

The U.S. economy added a smaller-than-expected tally of new jobs last month, but a sharp jump in wage growth and revisions tied to population changes and immigration make for a noisy report that might not indicate broader strength in the labor market.

The central bank is grappling with how quickly to lower interest rates after pausing cuts last month.

On Friday the Labor Department reported a 4% unemployment rate last month and the addition of 143,000 jobs, a picture "consistent with a healthy labor market that is neither weakening nor showing signs of overheating," Federal Reserve Governor Adriana Kugler said in Miami, Florida.

Jobs growth slowed in January but a downtick in the unemployment rate, an uptick in wage growth and revisions to prior hiring figures should keep the Federal Reserve on hold when it comes to interest rates,

U.S. job growth slowed more than expected in January after robust gains in the prior two months, but a 4.0% unemployment rate probably will give the Federal Reserve cover to hold off cutting interest rates at least until June.