The number of initial jobless claims in the U.S. last week recorded 214,000, exceeding the forecast of 211,000. Weekly jobless claims are an indicator that the Fed uses to measure the labor market when deciding interest rates. If the number exceeds expectations, it is a sign 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 number falls below expectations, it is a sign that the labor market is robust, which could provide a reason for the Fed to focus on curbing inflation and hold or raise interest rates.
