Fears of overheating could push US to raise interest rates in March
Economists suspect unemployment claims near 44-year low and rising inflation will make Fed hawkish
Washington — The number of Americans filing for unemployment benefits fell to near a 44-year low last week, pointing to further tightening of the labour market even as economic growth appears to have remained moderate in the first quarter. The stronger labour market and rising inflation could push the Federal Reserve to raise interest rates in March. Several Fed officials have suggested this in recent days. "The jobs market is strengthening and we are near full employment. The Fed is worried that the jobs market will overheat and that is fanning the discussion of a March rate hike," said Ryan Sweet, senior economist at Moody’s Analytics in Westchester, Pennsylvania. Initial claims for state unemployment benefits dropped 19,000 to a seasonally adjusted 223,000 for the week to February 25, the lowest level since March 1973, the labour department said on Thursday. It was the 104th consecutive week that claims remained below 300,000, a threshold associated with a healthy labour market. ...
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