US Jobless Claims Steady; Fed Holds Rate Policy

Initial jobless claims in the US rose by 1,000 to 218,000 for the week ended July 26, remaining near a three-month low and below economists' expectations, indicating a stable labor market. Continuing claims held steady at 1.95 million, suggesting no significant increase in long-term unemployment. Despite recent job cuts associated with DOGE actions, tariffs, and artificial intelligence, companies remain hesitant to lay off workers, aiming to retain skilled employees amid uncertainty. Federal Reserve Chair Jerome Powell pointed to the stable labor market as a justification for the Fed's unchanged interest rate policy. Some analysts caution that headline figures may mask underlying job-market weakness, as some workers face extended job searches. The July jobs report is awaited for additional insights into the employment landscape.