The Weekly Jobless Claims came in at 209,000 dropping 13,000 from the week before. That is a very low number and below the expected number of 221,000. This report has been strong for well over a year; thus, the four-week average is low as well at 219,250. Anything under 300,000 is a good number and the trend has not changed so there is no fear, yet, that it is rising signaling danger to the economy down the road.
Also out this morning was inflation numbers which were also low except a little uptick in the wholesale figures.
It is hard for the Fed to look at these numbers and justify a lowering of interest rates in their late July meeting. They can and will point to other factors in their decision making if they do indeed push rates down. There are in fact valid reasons for moving to a loosening stance on money supply but they certainly can’t use the job market or inflation as a reason to do anything with rates.