© Reuters. FILE PHOTO: A sign advertising job openings is seen outside of a Starbucks in Manhattan, New York City, New York, U.S., May 26, 2021. REUTERS/Andrew Kelly/File Photo
By Lucia Mutikani
WASHINGTON (Reuters) -The number of Americans filing new claims for unemployment benefits increased moderately last week, suggesting that the labor market was gradually losing momentum as higher borrowing costs curb demand in the broader economy.
The weekly jobless claims report from the Labor Department on Thursday also showed unemployment rolls declining in late November after the so-called continuing claims hit a two-year high in the middle of the month.
While the mixed report supported economists’ views that the Federal Reserve was likely done raising interest rates this cycle, it suggested that financial market expectations of a cut in the first quarter were too optimistic.
“There is no cumulative deterioration yet in the labor market that has caused previous Fed chairs to pivot quickly from rate hikes to rate cuts to support the economy,” said Christopher Rupkey, chief economist at FWDBONDS in New York. “The data will keep the Fed on the sidelines watching carefully with…
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