The jobless claims totaled 260,000 for the week ended January 22, with figures coming in line with expectations. Compared to the previous week’s numbers, the numbers are 30,000 lower. The unemployment filings are lower for the first time in four weeks after in December claims reached a half-century low of 188,000.
The US economy grew at a higher rate than expected in 2021 despite the challenges posed by Omicron and supply chain disruption.
According to data from the Commerce Department, the country’s GDP increased at a 6.9% annualized pace, higher than the 6% forecasted.
Despite the latest GDP increase, Fed Chairman Jerome Powell warned that growth in the early part of the year is slowing. The Fed telegraphed a March interest rate hike – the first one since 2018. Moreover, central bankers expect the end of the monthly asset purchases in the same month.
The tightening measures respond to inflation running at its highest pace in four decades.
Sources: cnbc.com, forexfactory.com