Companies added just 106,000 new workers for the month, down from an upwardly revised 253,000 the month before.
Euro zone narrowly avoided a contraction as energy prices provide some relief.
In its latest economic update, the institution said the global economy will grow 2.9% this year.
The employment cost index increased 1% in the October-to-December period, the Labor Department reported Tuesday.
The personal consumption price index excluding food and energy for December increased 4.4% from a year ago.
Gross domestic product was expected to rise 2.8% at an annualized pace in the fourth quarter, according to Dow Jones estimates.
If Cuba loses in the U.K.'s High Court, it could ultimately cost the island nation billions in long overdue payments.
Powell is experiencing "mild symptoms," according to the announcement.