US weekly jobless claims fall as labor market remains tight

US weekly jobless claims fall as labor market remains tight
# 22 February 2024 22:40 (UTC +04:00)

The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, suggesting that job growth likely remained solid in February, APA reports citing Reuters.

Labor market resilience, which is underpinning the economy, reduces the urgency for the Federal Reserve to start cutting interest rates. Minutes of the U.S. central bank's Jan. 30-31 meeting published on Wednesday showed the majority of policymakers were concerned about the risks of cutting rates too soon, with broad uncertainty about how long borrowing costs should remain at their current level.

"Job layoffs remain minimal so wage pressures from a tight labor market will continue to push off the day when Fed officials can safely lower interest rates without reigniting inflation," said Christopher Rupkey, chief economist at FWDBONDS in New York. "The key economic indicator of whether the economy is slowing down has been and always will be job losses."

Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 201,000 for the week ended Feb. 17, the Labor Department said on Thursday. Economists polled by Reuters had forecast 218,000 claims for the latest week.

#
#

THE OPERATION IS BEING PERFORMED