Worries that rising inflation would drive up jobless claims can be eased a little after today’s unemployment claims report.

Americans who filed for unemployment claims in March matched the number of those who filed in February. The numbers remain unchanged at 212,000. The expectation was that the numbers would increase, up to 215,000, but that is not the case.

This indicates that the US economy is recovering, even if it is in some small way. The hope is that these positive numbers can translate into less inflation very soon. High inflation has been hurting multiple markets, particularly the cryptocurrency industry and stock markets.

Layoffs for US jobs are low for now, and if those numbers continue to look positive, they could contribute to slowly diminishing inflation levels. Unadjusted claims decreased, dropping by nearly 7,000 over the last week. The largest claims increases occurred in California, followed by Oregon, Georgia, and Connecticut.

US Economic Outlook

This week’s FOMC meetings have touched on the economy, specifically the interest rate cuts and when they will be coming, as well as increasing inflation.

The Federal Reserve is expected to delay interest rate cuts, which may not even be issued this year, if inflation stays high. Fed chairman Jerome Powell did not say when the rate cuts would happen or if they were likely this year. He decided to focus on keeping monetary policy restrictive for the near future in hopes that it would help inflation from spiraling out of control.

The US economy is going in a few ways but falling behind in a few other ways. The stock markets are trading sluggishly for now as inflation fears persist. Those looking for safe bets in the stock market should stick with stocks that have proven to be solid investments all year long, such as Netflix, Microsoft, and Nvidia.