July 3, 2024 – 6:57 AM PDT
WASHINGTON (Reuters) – First-time applications for U.S. unemployment benefits increased last week, while the number of people on jobless rolls rose further to a 2-1/2 year high towards the end of June, consistent with a gradual cooling in the labor market.
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Ebbing labor market momentum, together with abating inflation pressures, keep the Federal Reserve on track to start cutting interest rates this year, with financial markets hopeful that the easing cycle could start in September.
Fed Chair Jerome Powell said on Tuesday that the economy was back on a “disinflationary path,” but stressed policymakers needed more data before cutting rates.
“The labor market is still historically strong, but not quite as strong as it was in 2022 and early 2023,” said Gus Faucher, chief economist at PNC…
