The US initial jobless claims rose last week, reducing the likelihood of further Fed rate cuts in the coming months.

BlockBeats News, January 16th, according to the Associated Press, the number of initial unemployment claims in the United States rose last week, but layoffs remained at historically low levels, indicating overall health in the job market. The U.S. Department of Labor released data on Thursday showing that for the week ending January 11th, the number of initial unemployment claims increased by 14,000 to 217,000. Weekly initial jobless claims are considered a measure of layoffs. Despite some signs of labor market softness in 2024, job opportunities remain plentiful and layoffs are at historically low levels. Last week, the Labor Department's nonfarm payroll report noted a surge in December job growth and a decrease in the unemployment rate. Employers added 256,000 jobs last month, bringing the unemployment rate down to 4.1%. The final jobs report of 2024 emphasized that the economy and hiring can continue to grow at a robust pace even with interest rates far above pre-pandemic levels. Therefore, after three rate cuts by the end of 2024, the Fed is much less likely to cut rates again in the coming months. (FXStreet)