© Reuters.
Investing.com – With Jerome Powell confirming, after the rate meeting, that the Fed will continue to fight inflation, weekly unemployment data has now been released that should give an overview of , as the just-released weekly unemployment data missed expectations.
The data just released gives clear signs about the strength of the labor market, as unemployment claims fell less than experts expected, which indicates that the Fed’s desire for a weak labor market is still far from reaching, which motivates it towards a hike in the upcoming meetings.
The data released a while ago reversed the direction of the dollar, to now turn bullish after it was declining, while gold trimmed some of its gains. This is because the data supports the Fed’s tightening in the coming period and shows how strong the labor market is.
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Unemployment data
It recorded 191,000 applications, less than the forecast of experts, who expected 197,000. Especially since it had recorded 192 thousand the week before last.
Thus, it recorded 196.25 thousand in 4 weeks, after it recorded 196.5 thousand the week before last.
The weekly unemployment indicator provides very timely data, identifies the amount of individuals who claimed unemployment insurance for the first time during the past week and traders see the unemployment rate as an indicator that gives little indication of the future performance of the economy. The two downtrends have a positive effect on the country’s currency, as working people tend to spend more money.
The banking crisis did not deter the Fed
Fed Chairman Jerome Powell warned in his press conference that the Fed will do “enough” to bring inflation down to 2%, and will raise interest rates if they need to.
The tone of the Fed during this meeting was soft amid a banking crisis that raised concerns about the stability of the system. The statement referred to the potential impact of recent events.
“The US banking system is sound and resilient,” the committee said. Recent developments are likely to lead to tighter credit conditions for households and businesses and affect economic activity, employment and inflation. The extent of these effects is uncertain. The committee remains very attentive to inflation risks.
Despite warnings about the potential effects of the banking crisis, the committee unanimously agreed to raise the interest rate.
Gold and the dollar now
It settled without rising or falling at $1970 an ounce.
While US gold futures rose 1.2% to 1973 dollars.
It rose 0.1%, to score 102 points.
