Weekly jobless claims at seven-month low |
| The Labor Department reported Wednesday, a day earlier than usual due to the Thanksgiving holiday, that 216,000 Americans filed new claims for unemployment benefits in the seven days to November 22nd, a 6,000 weekly drop to their lowest level since April. Economists polled by FactSet had expected 230,000 new claims. The four-week average of claims dropped 1,000 to 223,750, while the total number of claims, reported with a one-week lag, rose 7,000 to 1.96m. The figures suggest that both the economy and inflation are slowing, boosting expectations in some quarters of a Federal Reserve rate cut next month. however, Carl Weinberg, chief economist at High Frequency Economics, commented: "No one can construe any story about a surge in layoffs from this report. The message to the Fed from this data point is that there is no reason to rush to cut rates in December." |
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