Analysis: Strong jobless claims data leaves Fed watching for signs of cooling labor market

According to Odaily Planet Daily, initial unemployment claims fell by 5,000 to 229,000 in the week ending August 23, below expectations of 230,000. Continuing claims also fell to 1.95 million the previous week. Analyst Giuseppe Dellamotta noted that the data was strong, especially considering the downward revision to continuing claims. While businesses have been reluctant to make large-scale layoffs, they have scaled back hiring. Meanwhile, the high level of continuing claims suggests that it's taking longer for the unemployed to find work.

Signs of a cooling job market have become a focus for Federal Reserve officials, with investors expecting the central bank to lower interest rates at its policy meeting next month after Chairman Jerome Powell said in a speech last week at the bank's annual Jackson Hole conference that "downside risks to employment are rising" and left the door open to a rate cut.