US Unemployment Claims to be Released Today
Expect the unemployment claims report to be issued later today, which could negatively impact markets and slow inflation progress.
The unemployment claims for the United States are scheduled to be released for Thursday at 8:30 am Eastern Time.
The report is expected to detail the initial claims, with the consensus at about 220 thousand. If that number holds true, it would be an increase of 0.27%, which could slightly impact the market and hurt the US recovery back to 2% inflation and a stronger economy.
The United States has seen economic growth and a decrease in unemployment recently, in the post-pandemic era. However, the growth has been slow and frustrating for those who were most heavily impacted by the pandemic.
In 2022, the US was in a technical recession, where there were two consecutive quarters of economic decline. In 2024, the US is no longer in a recession and the economy is growing. It is just happening slowly, and that gradual improvement has caused the Federal Reserve to be cautious with rate cuts.
Fed Statements Wednesday and Thursday
Fed Chairman Jerome Powell came before Congress on Wednesday to talk about the central bank’s plan for 2024. He said that no rate cuts were going to happen just yet as the inflation target has not been achieved. He did say that rate cuts were still the plan for later on in the year, but the bank was waiting to see substantial progress toward a goal for 2% inflation.
If the unemployment claims report comes back today with an increase reported, that could slow the inflation rate’s progress toward 2% and negatively impact stock market indexes.
No rate cuts have been made so far for the year, although there have been a few positive jobs reports already. These have been mildly promising, with job openings decreasing and job quitting numbers falling as well. In fact, the number of those leaving their jobs has fallen to a three-year low, which is a minorly positive indicator of an economy that is regaining its health.
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