It appears that Americans are finally returning back to work. US jobless claims fell to the lowest since the 60s, suggesting that America’s labour market is heating up and may actually meet freshly renominated Fed Chair Jerome Powell’s goalpost of “substantial further progress.”
According to latest data published by the Labour Department, weekly first-time applications for unemployment benefits fell by 71,000 to 199,000 for the week ending on November 20, marking the lowest number of claims since 1969, and significantly below the consensus estimate of 260,000 applications forecast by economists polled by Bloomberg.
The latest figures come just as inflation across the US soars by the sharpest pace in over 30 years, as supply chain bottlenecks, shortages, and surging demand force producers to hike prices for goods and services. In response, the Fed has decided to gradually begin paring back its monthly bond purchases, but stopped short of issuing a comprehensive timeline for an interest rate hike.
To further add support for an update to the country’s ultra-dovish fiscal policies, the US economy also expanded by more than previously expected during the summer. According to revised figures from the Commerce Department, second quarter GDP growth was upwardly revised to 2.1%, up by one-tenth of a percentage point from previous estimates.
So, mission accomplished, Jerome Powell?
Information for this briefing was found via the Labour Department and the Commerce Department. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.