U.S. Jobless Claims Decline, Indicating Moderate Labor Market Conditions

According to Odaily, the number of Americans filing for unemployment benefits decreased last week, returning to moderate levels seen earlier this year. For the week ending March 1, initial jobless claims fell by 21,000 to 221,000, below the expected 233,000. However, continuing claims rose to 1.9 million, nearing the highest level in three years recorded in January, suggesting increased difficulty for unemployed individuals in finding new jobs. Economists are closely monitoring weekly unemployment claims for signs of a deteriorating job market, as the Trump administration is working to reduce the size of the federal government. Concerns over the impact of tariffs are also influencing business decisions. According to CME FedWatch data, following the release of the unemployment claims, the probability of a 25 basis point rate cut by the Federal Reserve in March dropped to 7%, down from 9%. The next Federal Open Market Committee (FOMC) meeting is approximately 13 days away.