Last week, the number of weekly new unemployment claims in the U.S. recorded 211,000, exceeding the forecast of 205,000. Weekly unemployment claims are an indicator used by the Federal Reserve to gauge the labor market when deciding interest rates. If the claims exceed expectations, it signals that companies are increasing layoffs, meaning the labor market is cooling, which could provide a reason for the Fed to cut interest rates. If the claims fall below expectations, it signals a robust labor market, which could provide a reason for the Fed to focus on curbing inflation by freezing or raising interest rates.
