Jobless claims fall by 17,000, September rate cut possible
Jobless claims fall by 17,000, September rate cut possible

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US initial jobless claims fell by 17,000 in the week ended July 6 to a total of 222,000, the US Department of Labor reported today. The previous week’s level was revised upward by 1,000.
Economists polled by Reuters had forecast 236,000 claims in the latest week, which included the Independence Day holiday. Claims tend to be volatile around holidays, and auto makers typically shut down assembly plants starting the July 4 week to retool for new models, according to Reuters.
Meanwhile, the four-week moving average declined by 5,250 in the latest week to 233,500. The previous week’s average was revised upward by 250.
In addition, Federal Chair Jerome Powell this week noted risks to the labor market, telling lawmakers that “we have seen considerable softening,” Reuters reported. Financial markets believe that this together with ebbing inflation pressures opened the door for the US central bank to start cutting rates in September.