Posted 1/11/2024, 1:57:33 PM
Jobless Claims Hit 3-Month Low as Inflation Cools and Economy Shows Resilience
- Unemployment benefit applications fell to 202,000 last week, the lowest level in nearly 3 months
- Jobless claims proxy layoffs and remain at extraordinarily low levels despite high interest rates and inflation
- The Fed raised rates 11 times since March 2022 to curb four-decade high inflation after the COVID recession
- Inflation has eased in the past year but still rose 0.3% in November and 3.4% over the last 12 months
- The combination of slowing inflation and unemployment below 4% has raised hopes the Fed is achieving a soft landing of rates hikes without causing a recession