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Share link:In this post: U.S. jobless claims have increased for nine consecutive weeks, reaching the highest level since 2018. Federal Reserve Chair Jerome Powell stresses caution in cutting interest rates, despite progress in lowering inflation. The Fed’s main inflation gauge rose at a 2.6% annual rate in May, with policymakers not expecting to reach the 2% target until 2026.Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on t
The U.S. has seen jobless claims rise for the ninth week in a row, marking the longest streak since 2018. The latest figures show 1.858 million people continuing to apply for unemployment benefits for the week ending June 22.
This number was higher than the expected 1.84 million and the previous week’s 1.839 million. For the week ending June 29, initial unemployment claims reached 238,000, again surpassing the expected 235,000 and the previous week’s 233,000.
Jerome Powell, Chair of the Federal Reserve of the United States
The increase in unemployment claims continues to climb, hitting the highest level since November 2021. Federal Reserve Chair Jerome Powell recently discussed the progress made in controlling inflation over the past year.
He expressed the usual cautious optimism but stressed the need for more evidence before considering cutting interest rates, adding:
“We’ve made quite a bit of progress in bringing inflation back down to our target.”
Powell emphasized the importance of ensuring inflation is sustainably moving towards the 2% target before easing policies.
He was joined by European Central Bank President Christine Lagarde and Brazil’s central bank Governor Roberto Campos Neto at a central banking forum in Sintra, Portugal.
Christine Lagarde, the President of the European Central Bank
The discussions come as markets closely monitor the actions of the Fed and other global central banks amid signs of easing inflation. Some central banks, including the ECB, have begun to roll back interest rates gradually.
Monitoring inflation and economic stability
The Commerce Department’s personal consumption expenditures price index, the Fed’s main inflation gauge, rose at a 2.6% annual rate in May.
This is a remarkable decrease from the 4% rate observed a year ago, although policymakers do not anticipate reaching the Fed’s 2% goal until 2026.
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