MNI BRIEF: US Jobless Claims Lower Vs Expected, Calming Fears
MNI (WASHINGTON) - U.S. filings for jobless claims fell 17,000 to a seasonally adjusted 233,000 in the week ended July 27, lower than the 240,000 analysts expected, and allaying concerns that the labor market is deteriorating quickly. Claims in the previous week were revised up by 1,000 to 250,000 and the four-week average rose to 240,750, the highest since August 2023, the Labor Department said Thursday. Continuing claims were 1.875 million in the week to July 27.
Fed funds implied rates have cooled further to extend Wednesday's decline as investors continue to scrutinize labor market data after the unemployment rate unexpectedly jumped to 4.3% last month. Over 100 bps of Fed cuts are priced in by the end of the year. (See: MNI INTERVIEW: Fed To Wait For Sept Despite Jitters- Stein)