Before the banking sector turmoil that began last week, the Fed had signaled that two more rate hikes were likely this year. The central bank’s benchmark rate is now in a range of 4.5% to 4.75%, its highest level in 15 years. history over the last week - which have been blamed in large part to rising interest rates - have some economists thinking Fed officials will tread more lightly next week and either raise its rate by 25 basis points or perhaps not at all. However, the second- and third-largest bank failures in U.S. With recent data showing that those rate hikes have done little to bring down inflation and even less to cool the economy and labor market, many analysts were expecting the Fed to raise rates by another half-point when it meets next week. “Many announced layoffs don’t end up happening, and those that have been laid off are quickly finding work elsewhere, reflecting the ongoing imbalance between labor demand and supply,” the analysts wrote.Īt its February meeting, the Fed raised its main lending rate by 25 basis points, the eighth straight rate hike in its year-long battle against stubborn inflation. In a note to clients, analysts at Oxford economics said there are still few signs that the recent jump in layoff announcements, particularly in the tech sector, is translating to a rise in unemployment. The four-week moving average of claims, which flattens out some of week-to-week volatility, fell by 750 to 196,500, remaining below the 200,000 threshold for the eighth straight week.Īpplications for unemployment benefits are seen as a barometer for layoffs in the U.S. for the week ending March 11 fell by 20,000 to 192,000 from 212,000 the previous week, the Labor Department said Thursday. Huh, File)įewer Americans applied for jobless claims last week as the labor market continues to thrive despite the Federal Reserve’s efforts to cool the economy and tamp down inflation.Īpplications for jobless claims in the U.S. On Thursday, the Labor Department reports on the number of people who applied for unemployment benefits last week. File – A hiring sign is displayed at a grocery store in Arlington Heights, Ill., Tuesday, Dec.
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