Amid conflicting narratives on whether the US labour market is set to face a melt-down in a near-term as projected by the US Fed, pouring cold water on the US Federal Reserve’s effort to allay the demands of workers, the number of Americans filing for state unemployment benefits for the first time on their lives fell below a 200,000-mark last week, comfortably contributing to a sky-scrapping inflation-surge.
Citing statistics, US initial weekly jobless claims fell by 15,000 to an adjusted 190,000 positions over the week that ended on January 14. In the matter of the fact, with hourly wages’ growth rising at a break-neck pace and acting as a critical handle to spur up the inflation indicators, the US Federal Reserve had acted promptly and raised interest rates last year at its highest pace in more than four decades, however, the US Fed’s attempts to calm down the US labour market seemed to have botched to bear fruits.
US initial weekly jobless claims fall below 200,000, continuing claims keep rising
On top of that, latest jobless claims report had solidified analysts’ views that the US Central Bank would unlikely to sway away from its rate-hike cycle, however, following release a cascade of fundamentals showing that the US economy might be on the brink of a recession, money markets across the US were anticipating a pause from the US Fed’s rate-hike cycle.
However, pouring fresh scorns on market participants’ hope, latest initial jobless claims data had reinvigorated views that the US Fed would unlikely to stop its gradual rate-hike cycle this year, as proposed by the Fed chair Jerome Powell during the US Fed’s December 14-15 policy meet.
Adding further holocaust, aside from a decline in US weekly initial jobless claims, continuing claims rose by 17,000 to an adjusted 1.647 million over the week that ended on January 7.