Good day. A number of Federal Reserve officials expressed optimism about the economy and said they still see no need for an interest-rate move. This morning's release of the December jobs report will provide a broad picture of how employment fared last year. Research from a Fed economist found that it wouldn't take much of a recession to possibly push yields on short- and long-dated Treasurys to zero or below. And Bank of Canada Gov. Stephen Poloz said the damage that trade tensions have done to the global economy could be permanent.

Now on to today’s news and analysis.

Fed Vice Chairman Richard Clarida said the central bank’s moves last year to lower interest rates were well timed and had kept the U.S. economic outlook on a favorable track. “I believe that monetary policy is in a good place and should continue to support sustained growth, a strong labor market and inflation running close” to the Fed’s 2% target, he said.

New York Fed President John Williams said low interest rates are likely to be a persistent issue for some time to come, which will create challenges for how central banks operate. He also affirmed what he sees as the strong value of the central bank’s inflation-targeting system, even as the Fed has consistently failed to achieve its 2% goal since adopting it in 2012.

The Labor Department will give a broad picture of how the jobs market fared last year with the release of the December jobs report. Economists surveyed by The Wall Street Journal expect employers added jobs at a slower pace during the month while unemployment remained at a 50-year low. Read more on what to watch for in the jobs report.

A recent court opinion has caught the attention of those who have issues with how the Federal Reserve is structured.

The November opinion declared that the central bank’s 12 regional Federal Reserve Banks were acting as agents of the U.S. government because they administer government-created programs.

But that doesn't end questions about the regional banks' quasi-private status. Read More.

If the U.S. economy entered a recession soon and interest rates fell in line with levels seen during the moderate recessions of 1990 and 2001, yields on even longer-dated Treasury securities could fall to or below zero, according to new research from a senior Fed economist.

The New York Fed added $83.1 billion in temporary liquidity to financial markets Thursday, as a top official said the central bank may keep adding temporary money to markets for longer than policy makers had expected in September.

8:30 a.m.: U.S. Labor Department releases December jobs report

"The House passed the Insider Trading Prohibition Act last month, 410-13. Insider-trading law needed clarification, but ITPA proves that bipartisanship is no guarantee of good legislation," writes Lyle Roberts, a partner with Shearman & Sterling LLP, in an opinion piece for the Journal. "Rather than 'let potential wrongdoers know exactly what behavior will cross the line,' as the bill’s sponsor Rep. Jim Himes (D., Conn.) claimed, ITPA would increase confusion. The bill would perplex investors, give prosecutors too much discretion, and bedevil the courts. The Senate should reject it."

• Chinese President Xi Jinping’s chief trade negotiator will travel to Washington early next week to sign a phase-one trade deal with the U.S., China’s Commerce Ministry said, the first official confirmation by Beijing on the signing of an agreement that could help ease bilateral tensions.
• The Dow Jones Industrial Average rose more than 200 points Thursday, notching a fresh record and finishing just below 29000, as signs of geopolitical calm pulled investors back into highflying stocks.
• Congress quietly renewed the U.S. Export-Import Bank, bundling its reauthorization into a federal spending package signed into law on Dec. 20, after President Trump changed his position and backed it to compete with China.
• First-time U.S. unemployment claims fell by 9,000 to 214,000 in the week ended Jan. 4, compared with the 220,000 claims expected by economists surveyed by The Wall Street Journal.
• Companies in the S&P 500 are expected to return more money to shareholders through dividends than ever this year, continuing a streak of record payouts dating back to 2012.
• French industrial production rose above expectations in November, increasing 0.3% in November from October.
• Mexican consumer prices rose at their slowest rate in four years in 2019, giving Mexico’s central bank space to cut interest rates as economic activity faltered.
• Demonstrators in France took to the streets again to protest President Emmanuel Macron’s planned pension overhaul and to show support for what has become the longest transport strike in the country’s history.

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