Initial Jobless Claims totaled 521k, 19k less than expected, well down from 554k last week which was revised up by 3k. It’s the lowest figure since January. Continuing Claims fell by 72k and were 65k below forecasts. BUT, those receiving Emergency Unemployment Compensation rose by almost 100k to a new record high and those getting Extended Benefits past that rose by almost 5k. The data is clear evidence again that companies continue to reduce the level of firings but still remain extremely reluctant to hire new workers and its why Congress is already discussing a further extension of unemployment insurance. The insured unemployment rate remained unchanged at 4.6%.

ECB President Trichet in his post rate announcement press conference is not saying anything new or market moving and gives no hint whatsoever that they are any closer to raising interest rates. He said rates at 1% “remain appropriate.” He sees “low inflationary pressure over the medium term, as money and credit expansion continues to moderate.” “The current negative inflation rates are in line with previous expectations and largely reflect movements in global commodity prices. Inflation rates are expected to return positive again in coming months.” He does though believe “inflation expectations” are “firmly anchored.” In terms of the recovery, he said uncertainty remains high and it will be uneven. When the economy improves though, he said policy measures will be unwound. He’s stating the obvious with WHEN being the only question.

Category: MacroNotes

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “Jobless claims and more from the ECB”

  1. hopeImwrong says:

    Communication from placement firm:

    “Although the general economic situation seems to be getting a little better, we’re still not out of the woods yet,” Spherion President and CEO Roy Krause said. “We are finding that many employers have cut so deep into their staff that they are having a difficult time maintaining operational levels — which should indicate that additional hiring in on the horizon. However, it is still difficult to pinpoint an exact timeframe when we will begin to see a significant pick-up.”

  2. [...] that huge number of people have been unemployed for a long time, and Congress is looking to extend already-extended unemployment [...]

  3. [...] receiving emergency unemployment compensation increased by almost 100,000 to a new record high, notes Miller Tabak equity strategist Peter [...]