Number of initial applications recently higher than expected
The number of initial applications for unemployment benefits in the USA has recently been higher than expected. Last week, 231,0000 citizens applied for state benefits, as the US Department of Labor announced on Thursday. Experts surveyed by the Reuters news agency had only expected 220,000, after a revised 218,000 in the previous week.
The less volatile four-week average rose to 220,250. However, experts consider a figure of 270,000 initial claims to be the critical mark that indicates a negative trend reversal on the labor market.
The US Federal Reserve (Fed) is combating high inflation with a tight monetary policy. At the same time, it wants to cool down the hot labor market without stalling the economic engine. After some substantial interest rate hikes, the Fed recently paused twice in a row and left the key monetary policy rate in the range of 5.25 to 5.50 percent. Although central bank chairman Jerome Powell has not ruled out a further increase, there is already speculation on the futures markets about interest rate cuts from the spring onwards in view of the slowdown in inflation.
Despite the Fed's efforts to curb inflation, the number of initial unemployment benefit applications in the USA continues to exceed predictions. As of last week, 231,000 citizens submitted initial applications, surpassing the anticipated 220,000 by the Reuters-surveyed experts.
Source: www.ntv.de
