The number of Americans filing new claims for unemployment benefits fell last week to near a 15-year low, indicating the jobs market was on solid footing even as the economy struggles to regain momentum after abruptly slowing in the first quarter.
Despite the tightening labor market, a strong dollar and lower oil prices are keeping inflation under wraps. That trend along with signs of modest economic growth early in the second quarter would suggest the Federal Reserve will probably not raise interest rates until later in the year.
"The labor market is doing well ... inflation is not going anywhere fast. There is no urgency for the Fed to start normalizing monetary policy, they will likely wait until September," said Ryan Sweet, a senior economist at Moody's Analytics in West Chester Pennsylvania.
Grand Forks Herald