US DATA
Initial jobless claims came in on the low side in the week to Dec 14, at 220k, dropping more than the 12k expected (to 230k from 242k prior unrevised). Continuing claims also came in lower than expected for the Dec 7 week, at 1,874k (1,892k expected) from 1,879k (rev down 7k).
- That kept the 4-week average of initial claims at 226k, up just slightly from 224k in the prior week and 8k up from the mid-November low, but down from the high 230ks in October (which appeared hurricane-related).
- And continuing claims have likewise steadied out in the 1,870-1,900k range since mid- October.
- All of that is suggestive of a labor market that remains on the cool side, but without any signs of significant deterioration - conditions Fed Chair Powell alluded to in the December press conference, that afforded the FOMC more patience to see further progress on disinflation before easing to protect the labor market.
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