WASHINGTON (AP) – In another grim sign for the U.S. labor market, jobless claim applications jumped to their highest level in almost four years last week, virtually assuring the Federal Reserve will cut its benchmark interest rate next week.
The number of Americans filing for unemployment benefits for the week ending Sept. 6 rose by 27,000 to 263,000, the Labor Department reported Thursday. That’s the most applications since the week of Oct. 23, 2021 and well above the 231,000 new applications economists forecast. It’s also the biggest week-to-week increase in almost a year.
Most analysts were already forecasting an interest rate cut after Fed Chair Jerome Powell signaled as much at a conference of central bankers three weeks ago. However, another report Thursday showing that consumer inflation remains elevated could complicate the Fed’s dual mandate of keeping prices in check while supporting a healthy labor market.
Typically the Fed would cut its key rate when unemployment rose in an attempt to spur more spending and growth. But it would do the opposite and raise rates – or keep them unchanged – in the face of rising inflation.
The number of Americans filing for jobless benefits last week hits 263,000, most in nearly 4 years (above the forecast of 231,000)
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Posted by Fidler_2K
4 Comments
These numbers will grow rapidly, we are already in a recession aside AI euphoria. By the end of the year, the stagflation reality will hit hard.
Most of the increase comes from Texas, which reported twice as many as expected. It looks like an anomaly that might not be a true indication.
Don’t get me wrong, we’re still cooked.
Those numbers aren’t bad enough. Ur fired!
are we selling our positions here or holding for the long haul?