U.S. Jobless Claims Decline, Raising Prospects of Additional Rate Hikes

[Financial News]  U.S. initial jobless claims declined last week, extending the steady trend in the labor market. As a result, expectations are growing that solid economic growth could pressure the Federal Reserve (Fed) to raise interest rates again this year.
According to the U.S. Department of Labor on the 17th (local time), initial jobless claims totaled 196,000 for the week ended on the 12th. That was 10,000 fewer than the previous week's unrevised figure of 206,000. It was also well below the 207,000 forecast compiled by The Wall Street Journal (WSJ).
Continuing unemployment claims, which cover people who have been receiving benefits for at least two weeks and provide an indication of the overall number of unemployed people, totaled 1.73 million as of the 5th. That was 39,000 fewer than the previous week's downwardly revised figure. Statistics on continuing claims are released with a one-week lag compared with initial claims data.
The Journal analyzed that continued signs of an overheated labor market are likely to pressure the Fed to maintain its monetary tightening stance going forward. Earlier, the Fed raised its benchmark interest rate on the 16th for the first time in three years to curb inflation.

[email protected] Yoon Jae-jun Reporter