Last week, the number of weekly new unemployment claims in the U.S. recorded 200,000, falling below the expected 205,000. Weekly unemployment claims are an indicator the Federal Reserve uses to measure the job market when deciding interest rates. If claims exceed expectations, it signals that companies are increasing layoffs, meaning the job market is cooling down, which could provide a basis for the Fed to cut interest rates. If claims fall below expectations, it signals a robust job market, which could provide a basis for the Fed to focus on curbing inflation and either freeze or raise interest rates.
