Question

Please select a relevant current event topic in economics and post in the discussion forum along with your brief summary of the article. Good on line sources are CNN Money, USA Today Money Section, Wall Street Journal On line, Economic Way of Thinking, Economist, or any other on line periodical or news service. Students should provide a link to the article or select the print function and then copy and paste the article into the forum for best results.

Please provide a one paragraph analysis (summary) of your article and thoughts to begin the discussion

Answer 1

US weekly jobless claims fall more than expected

• The number of Americans filing applications for unemployment benefits fell more than expected last week.
• The data pointed to underlying market strength despite a sharp slowdown in job growth in May.
• Initial claims for state unemployment benefits dropped to 216,000 for the week ended June 15, the Labor Department said.

The number of Americans filing applications for unemployment benefits fell more than expected last week, pointing to underlying market strength despite a sharp slowdown in job growth in May.

Initial claims for state unemployment benefits dropped 6,000 to a seasonally adjusted 216,000 for the week ended June 15, the Labor Department said on Thursday. Data for the prior week was unrevised.

Economists polled by Reuters had forecast claims would decrease to 220,000 in the latest week. The Labor Department said no states were estimated. The drop in claims followed three straight weekly increases.

Claims are being closely watched for signs of a rise in layoffs stemming from a recent escalation in trade tensions between the United States and China.

The trade war has increased uncertainty over the U.S. economic outlook, prompting the Federal Reserve on Wednesday to signal it could cut interest rates by as much as half a percentage point over the rest of this year. The U.S. central bank kept rates unchanged on Wednesday.

Fed Chairman Jerome Powell acknowledged the meager job gains in May and said “in light of recent developments this bears watching,” but also noted that “many labor market indicators remain strong.”

The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 1,000 to 218,750 last week

Job growth has cooled from the brisk pace in 2018 in line with the economy, which is slowing as the stimulus from last year’s massive tax cuts and increased government spending fades.

The Atlanta Fed is forecasting gross domestic product rising at a 2.0% annualized rate in the second quarter. The economy grew at a 3.1% pace in the January-March quarter, boosted by a temporary burst in exports and an accumulation of inventories.