Slower US job growth expected in December; annual wages increase seen below 4%

U.S. job growth likely moderated in December, while the increase in annual wages probably slowed to below 4% for the first time in 2-1/2 years, potentially drawing the Federal Reserve a step closer to start cutting interest rates. The closely watched employment report from the Labor Department on Friday is also expected to show the unemployment rate edging up to 3.8% last month from 3.7% in November. Easing labor market conditions would add to data last month showing inflation ebbing significantly in November and could cement financial market expectations for a rate cut in March.