U.S. jobless claims move down again

The labor market continues to defy Federal Reserve attempts to cool hiring, with U.S. applications for unemployment benefits down again last week and remaining at historically low levels.

Jobless claims in the U.S. for the week ending March 18 fell by 1,000 to 191,000 from the previous week, the Labor Department said Thursday.

The four-week moving average of claims, which flattens out some of week-toweek volatility, fell by 250 to 196,250, remaining below the 200,000 threshold for the ninth straight week.

Applications for unemployment benefits are seen as a barometer for layoffs in the U.S.

On Wednesday, the Federal Reserve extended its yearlong fight against high inflation by raising its key interest rate by a quarter-point, despite concerns that higher borrowing rates could worsen the turmoil that has gripped the banking system.

Fed Chair Jerome Powell stressed that the central bank remains focused on fighting high inflation, which could require additional rate hikes.

Yet he also signaled that the Fed might not need to impose a lengthy string of increases if more banks were to reduce their lending to conserve cash. This could slow the economy, hiring and inflation, Powell said.

The Fed’s rate increases are meant to cool the economy, labor market and wages, thereby suppressing prices. But so far, those things have not happened to the degree that the central bank had hoped.

Inflation remains more than double the Fed’s 2% target, and the economy is growing and adding jobs at a healthy clip.