US Jobless Insurance Weekly Claims Expected To Go Up
Estimates show the jobless claims may go up to 220,000 from last week’s 216,000
The Wall Street will be closely watching Thursday’s announcement of the U.S. Department of Labor's initial unemployment insurance weekly claims, which some estimates say could increase to 220,000 from last week’s 216,000, according to an investing.com report. If the claims go up as predicted, it would be a reversal of a four-week drop in insurance claims, underscoring a resounding economic recovery supported by robust job growth.
The unemployment claims are a metric that the Federal Reserve closely monitors to fine-tune its interest regime. The Fed Reserve returned to easing the interest rate only in September after nearly 22 months of increasing or holding it steady, thus tightening the currency supply by making bank loans dearer. It achieved the target inflation rate of nearly 2 percent by squeezing the money supply and felt emboldened to reverse the trend by cutting the interest rate to about 4.75 percent in September after successfully guiding the economy through the COVID-induced recessionary worries.
Likely impact on interest rate
Last week’s actual claims of 216,000 easily beat the forecast of 229,000, which was an increase from the previous week’s actual of 228,000.
