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Jobless Claims Spike Immediately After Fed Rate Cut. Coincidence?
The labor market just flashed a warning sign.
Weekly initial jobless claims jumped to 236,000 this morning, a significant rise of 44,000 from last week. This is the highest level we've seen since the holiday volatility began.
Why this matters:
Yesterday, the Fed cut rates by 25bps (the 3rd straight cut) specifically citing a "softening labor market." Today's data validates that fear. We are moving from a "tight" market to a fragile one.
The "No Hire, No Fire" era might be ending.
Next big test: The delayed Monthly Jobs Report drops next Tuesday (Dec 16). If that misses expectations, expect volatility.
Question: Is the labor market cooling too fast for a soft landing?
#USJobsData #economy #FederalReserve #joblessclaims #MarketUpdate