The number of initial jobless claims in the US fell in the week ending Jan. 4, signaling momentum in the labor market of the world's largest economy. Data released today, Jan. 8, by the US Labor Department showed that initial claims dropped by 10,000 to 201,000, marking the lowest level in 11 months.
"The Fed says rate cuts from here on out will be gradual," said Carl Weinberg, chief economist at High Frequency Economics. "Today's claims data say that they need not be in a rush to ease monetary conditions. Fed policy is aimed at supporting the economy and the job market before a recession shapes up."