Thursday, 19 Jun 2025
  • Contact
  • About Us
New York Interest
  • Local News
  • Business
  • Sports
  • Tech
  • Music
Font ResizerAa
New York InterestNew York Interest
  • Local News
  • Business
  • Sports
  • Tech
  • Music
Search
  • Local News
  • Business
  • Sports
  • Tech
  • Music
Have an existing account? Sign In
Follow US
Copyright © 2024 NewYork Interest. All Rights Reserved.
New York Interest > Blog > Business > US weekly job claims fall, boosting case for Fed to cut rates
Business

US weekly job claims fall, boosting case for Fed to cut rates

NewYork Interest Team
Last updated: August 15, 2024 3:05 pm
NewYork Interest Team
Share
US weekly job claims fall, boosting case for Fed to cut rates
SHARE


The number of Americans filing new applications for unemployment benefits fell last week — surprising economists and boosting hopes that the Federal Reserve will finally start cutting interest rates next month.

The Labor Department said initial claims for state unemployment benefits dropped to a seasonally adjusted 227,000 for the week ended Aug. 10, missing economists’ predictions of 235,000, according to a Reuters poll.

Thursday’s report marks the fourth month in a row during which the jobless rate has grown due to an influx of immigrants seeking jobs in the US — driving up the labor supply while hiring remains stunted.


Applicants queueing at a job fair in Ocean Casino Resort, Atlantic City, reflecting rising unemployment numbers.
The number of workers receiving benefits for an extended period of time still remains high, according to a jobs report on Thursday. AP

Thursday’s news comes a day after the federal government said inflation rose 2.9% last month versus a year ago — the first time price increases have fallen below 3% since 2021.

Now, some economists suspect the Fed may turn its attention to the labor market as its new indicator for rate cuts.

“These [job] payroll numbers are really where the action is going to be over the next couple of months,” Citi global economist Nathan Sheets told Yahoo Finance. “That’s where the Fed is going to be focusing by far the most of its attention.”

Thursday’s numbers follow a particularly weak July jobs report earlier this month — including an unemployment rate of 4.3%, representing a three-year high — that caused investors to panic. 

The latter, combined with the Fed’s announcement a few days prior that it would be maintaining interest rates stoked fears of a crash, shaking the market and causing a steep sell-off.

The Fed’s 525 basis points worth of hikes through 2022 and 2023 — a response to steep pandemic-induced inflation — have caused companies to cut back on hiring efforts.

Layoffs remain relatively low, though big names in the tech and media industries — including Google parent Alphabet, Amazon, Tesla, Paramount, Sports Illustrated and The Los Angeles Times — have cut jobs throughout the year. 


Traders working on the floor of the New York Stock Exchange as economic data indicates a weakening economy.
Economists suspect the Fed may turn its attention to the slowing labor market as an indicator for issuing rate cuts. Getty Images

The Fed has maintained its interest rate in the 5.25% to 5.50% range for a year now, with Chair Jerome Powell reaffirming in July the Fed’s goal of reaching a 2% inflation rate before issuing cuts. 

The number of Americans continuing to receive benefits after an initial week of aid fell 7,000 in the week ended Aug. 3 to a seasonally adjusted 1.864 million, the jobless claims report said.

The amount of workers receiving benefits for extended periods of time nears levels seen in 2021, remaining high as Americans experience more difficulty finding jobs due to an excess of labor supply.

With Post wires

Share This Article
Facebook Twitter LinkedIn Email Copy Link Print
Previous Article Single gals using ChatGPT to expose men lying about height on dating apps Single gals using ChatGPT to expose men lying about height on dating apps
Next Article Megaupload’s Kim Dotcom to be extradited to US in criminal case Megaupload’s Kim Dotcom to be extradited to US in criminal case

Your Trusted Source for Accurate and Timely Updates!

Our commitment to delivering trending news consistently has earned us the trust of a vast audience! Stay ahead with real-time updates on the latest events & trends by following us on social media.
FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe
TiktokFollow
LinkedInFollow

Popular Posts

Hamas leader Ismail Haniyeh assassinated in Tehran, Iran says

Hamas leader Ismail Haniyeh was killed in Iran by what the terrorist group said was…

By NewYork Interest Team

Consumer Price Index eases, but core inflation rises unexpectedly

In a surprising turn, the underlying inflation rate increased last month, casting doubt on the…

By NewYork Interest Team

Apple will let iPhone users in Europe choose own browser, delete apps

Apple will change how users choose browser options in the European Union, add a dedicated section…

By NewYork Interest Team

You Might Also Like

Sam’s Club joins Thanksgiving meal deal wars with feast for less than 0
Business

Sam’s Club joins Thanksgiving meal deal wars with feast for less than $100

By NewYork Interest Team
Google ‘manipulating search results’ ahead of 2024 election: Missouri AG
Business

Google ‘manipulating search results’ ahead of 2024 election: Missouri AG

By NewYork Interest Team
Two more LA Times editors quit after owner stops Kamala Harris endorsement
Business

Two more LA Times editors quit after owner stops Kamala Harris endorsement

By NewYork Interest Team
JPMorgan’s Jamie Dimon won’t join Kamala Harris or Donald Trump administrations: source
Business

JPMorgan’s Jamie Dimon won’t join Kamala Harris or Donald Trump administrations: source

By NewYork Interest Team
New York Interest
Facebook Instagram Twitter Tiktok Youtube Linkedin

About US

New York Interest: Your go-to source for the latest news, events, and insights about New York. We are dedicated to providing in-depth coverage and captivating stories that highlight the essence of the city that never sleeps.

Categories
  • Local News
  • Business
  • Sports
  • Tech
  • Music
Useful Links
  • Contact
  • About Us
  • Privacy Policy
  • Terms & Conditions

Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Copyright © 2024 New York Interest. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?