Initial U.S. jobless claims climbed to 219,000 in the week ended Sept. 14, compared with an upwardly revised 231,000 the previous week. Economists had forecast a consensus rate of 230,000.
The number of Americans filing for unemployment benefits for the first time rose less than expected last week, suggesting the U.S. labor market remains fairly healthy even after the Federal Reserve cut interest rates for the first time in more than four years earlier this week.
The number of people receiving benefits after a first week of aid, known as continuing claims, fell by 14,000 to a seasonally adjusted 1.829 million.
The US central bank kicked off its latest round of rate cuts on Wednesday, cutting rates for the first time since March 2020 by 50 basis points to a range of 4.75% to 5%.
Fed Chairman Jerome Powell said the risks between higher inflation and more labor market weakness are now evenly balanced and the central bank is likely to cut interest rates further amid growing confidence that inflation will ease.
But Powell also said the bank has no intention of returning to ultra-low rates as seen during the pandemic, and that the Fed’s neutral rate will now be much higher than in the past.
Traders now see a 67% chance the central bank will cut interest rates by 25 basis points at the November meeting, according to CME Group’s FedWatch tool.
“If labor markets continue to soften, we could see more big declines ahead. If employment growth and the unemployment rate stabilize, the path is clear for a gradual return to the neutral zone,” JPMorgan analysts said in a note published after the Fed’s decision to cut interest rates.
The house expects a 50 basis point cut at the next meeting in early November, provided there is additional easing in upcoming employment reports.
“More benign jobs data would, on the contrary, seal the case for the FOMC’s goldilocks scenario of 25bp cuts. per session over the rest of the year,” JPMorgan strategists said in the note.
At Bro In Finance, we are committed to helping traders navigate the complexities of the forex market. Our in-depth analysis, expert insights, and advanced tools empower you to make informed decisions and achieve your trading goals. Whether you’re a beginner or an experienced trader, Bro In Finance is your trusted partner in mastering the forex market. Visit our website for more trading tips and strategies to enhance your trading experience.
Check out our on Best Forex Brokers to know more about this topic
Check out the most crucial steps that you need to take when choosing your forex broker
Have you heard about an amazing Broker Platform called “AVATRADE“? We at Bro In Finance do recommend this amazing broker.
Check out here to figure out the best funded trader program: Which Funded Challenge is Best
Reference;
Nurse, P. (2024) Weekly initial jobless claims rose 219,000 last week, less than expected By Investing.com, Investing.com. Investing.com. Available at: https://www.investing.com/news/economic-indicators/weekly-initial-jobless-claims-rose-219000-last-week-less-than-expected-3623400 (Accessed: 19 September 2024).
+ There are no comments
Add yours