U.S. filings for unemployment benefits rose again last week and appear to be settling consistently at a slightly higher though still healthy level sought by the Federal Reserve.
Jobless claims for the week ending July 13 rose to 243,000 from 223,000 the previous week, the Labor Department reported Thursday. It’s the eighth straight week claims came in above 220,000. Before that stretch, claims had been below that number in all but three weeks so far in 2024.
Weekly unemployment claims are widely considered representative of layoffs.
The Federal Reserve raised its benchmark borrowing rate 11 times beginning in March 2022 in an attempt to extinguish the inflation that shook the economy after it rebounded from the COVID-19 recession of 2020. The Fed’s intention was to cool off a red-hot labor market and slow wage growth, which it says can fuel inflation.
“The Fed asked to see more evidence of a cooling economy, and for the most part, they’ve gotten it,” says Chris Larkin, managing director of trading and investing at E-Trade. “Add today’s weekly jobless claims to the list of rate-cut-friendly data points.”
Few analysts expect the Fed to cut rates at its meeting later this month, however most are betting on a cut in September.
