US Jobless Claims Fall to Lowest Level Since January

Initial jobless claims fell 8,000 to 205,000 in the week ending March 14, the lowest level since January. The drop signals continued tightness in the US labor market, a modest upside risk to wage/inflation pressures and a slight hawkish impulse for interest-rate expectations; expect only a modest market reaction concentrated in rates and risk sentiment.

Analysis

Initial jobless claims fell 8,000 to 205,000 in the week ending March 14, the lowest level since January. The drop signals continued tightness in the US labor market, a modest upside risk to wage/inflation pressures and a slight hawkish impulse for interest-rate expectations; expect only a modest market reaction concentrated in rates and risk sentiment.