US weekly jobless claims fall as expected

The number of Americans filing new applications for unemployment benefits fell last week, but stayed at levels consistent with a further loss of labor market momentum in June.

Initial claims for state unemployment benefits dropped 5,000 to a seasonally adjusted 245,000 for the week ended June 14, the Labor Department said on Wednesday. Economists polled by Reuters had forecast 245,000 claims for the week ended on June 14.

The Labor Department reported that the four-week average of claims, which evens out some of the week-to-week gyrations at 245,500 applications, compared to the previous week's average, which was revised up by 500. This is the highest level for this average since August 19, 2023.

Federal Reserve officials are expected to keep interest rates at a range of 4.25% to 4.50% at the conclusion of today's meeting, but attention will be focused on policymakers' quarterly forecasts for their outlook on the labor market and inflation.

The report was released one day ahead of schedule due to the Juneteenth holiday in the US.