Last week, the number of weekly new unemployment claims in the US recorded 214,000, surpassing the expected figure of 211,000. Weekly unemployment claims are an indicator the Fed uses to measure 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 and either freeze or raise interest rates.
