Weekly unemployment claims in the United States fell last week after a two-week rise, according to Labor Department data on Thursday that backed the Federal Reserve's aim of keeping a steady handle on rate hikes despite other softening economic data
WASHINGTON (Pakistan Point News / Sputnik - 18th August, 2022) Weekly unemployment claims in the United States fell last week after a two-week rise, according to Labor Department data on Thursday that backed the Federal Reserve's aim of keeping a steady handle on rate hikes despite other softening economic data.
"In the week ending August 13, the advance figure for seasonally adjusted initial claims was 250,000, a decrease of 2,000 from the previous week's revised level," the Labor Department said in a news release.
Unemployment claims hit their highest since late January just a week earlier, jarring with the blockbuster monthly jobs report that showed a gain of 528,000 in non-farm payrolls report for July twice more than the level forecast by economists.
The Fed is closely watching jobs and other economic data to decide on its next rate hike in September, after inflation retreated for the first time in more than a year in July. The Consumer price Index grew 8.5% during the 12 months to July versus the four-decade high growth of 9.1% during the year to June.
The Fed has carried out four rate hikes since March, bringing key lending rates from nearly zero to as high as 2.5% by July.
Money market traders are betting on a 50-basis point hike at the Fed's upcoming rate decision on September 21, versus previous wagers for a 75 basis-point hike.
A hike between 50 and 75 basis points would be "reasonable" for September, Mary Daly, president of the San Francisco division of the Fed, said in comments carried by CNN on Thursday.
