Reply To: Traders Market Weekly: Markets Rupture with Soaring yields and Fund Outflows


For the week ending September 24, initial jobless claims decreased by 16,000 to 193,000 (consensus 213,000). That is the first drop below 200,000 since early May. Continuing jobless claims for the week ending September 17 decreased by 29,000 to 1.347 million.

The key takeaway from the report is the same as last week: The low level of initial claims — a leading indicator — will register with the Fed as a basis to maintain an aggressive line with its rate hikes since it sees a softening in the labor market as a necessary ingredient for helping to bring inflation back down to its 2.0% target. To be sure, an initial claims reading below 200,000 is not at all consistent with a labor market softening in a manner that would placate Fed officials.