<mediadc-video-embed data-state="{"cms.site.owner":{"_ref":"00000161-3486-d333-a9e9-76c6fbf30000","_type":"00000161-3461-dd66-ab67-fd6b93390000"},"cms.content.publishDate":1667425421435,"cms.content.publishUser":{"_ref":"00000168-ed7d-d9d9-a9ec-ff7daffb0002","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"cms.content.updateDate":1667425421435,"cms.content.updateUser":{"_ref":"00000168-ed7d-d9d9-a9ec-ff7daffb0002","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"rawHtml":"
var _bp = _bp||[]; _bp.push({ "div": "Brid_67225758", "obj": {"id":"27789","width":"16","height":"9","video":"1128646"} }); ","_id":"00000184-3a4c-d791-abd4-3e5db9b70000","_type":"2f5a8339-a89a-3738-9cd2-3ddf0c8da574"}”>Video EmbedThe number of new applications for unemployment benefits fell by 1,000 to 217,000 last week, the Labor Department reported Thursday.
Falling jobless claims are a sign the economy is still adding jobs despite the Federal Reserve’s efforts to tighten monetary policy to slow economywide spending and bring down inflation.
For a lengthy stretch between early August and the middle of September, jobless claims defied expectations and remained low. Since the start of October, though, they have been above 210,000.
POWELL SAYS WINDOW FOR FEDERAL RESERVE AVOIDING RECESSION HAS ‘NARROWED’
The new numbers come a day after the Fed hiked interest rates by a whopping 75 basis points, the fourth straight hike of such an aggressive degree. The move is designed to dampen demand by raising borrowing costs but can result in the economy falling into a recession and people possibly losing their jobs.
Rising jobless claims would be seen as an indication that the rate hikes might be beginning to chip away at the country’s incredibly resilient labor market and could indicate that a recession is right around the corner.
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“We’re taking forceful steps to moderate demand so that it comes into better alignment with supply. Our overarching focus is using our tools to bring inflation back down to our 2% goal and to keep longer-term inflation expectations well anchored,” Fed Chairman Jerome Powell said Wednesday. “Reducing inflation is likely to require a sustained period of below-trend growth and some softening of labor-market conditions.”
All eyes will be on Friday’s release of the October employment report. The past several reports have clocked in at high levels, giving the Fed more resolve to keep jacking up rates.
