Jobless Claims Fall to 194,000, Near Lowest Since 1969, as Fed Meeting Nears

Layoffs in the U.S. remain rare, giving the Federal Reserve one less reason to worry about jobs as it weighs inflation.

The data

Initial claims for unemployment benefits fell to a seasonally adjusted 194,000 for the week ended Oct. 17, the Labor Department said Thursday, CNBC reported. That is just above the 189,000 recorded in mid-July, the lowest since September 1969. The four-week average dipped to 197,750, and claims have averaged 212,000 over the past year.

Hiring, though, is soft. Payrolls grew by only 29,000 in September and have averaged about 69,000 a month this year, while the unemployment rate rose to 4.2%. Economists describe this as a "low-hire, low-fire" job market.

"The claims data suggests that labor market conditions are stable," Thomas Simons, chief U.S. economist at Jefferies, said in a client note quoted by CNBC.

The Fed angle

Fed officials meet next week. CNBC reported that policymakers have described the labor market as a source of strength and are focused more on inflation, which remains well above the 2% target. Markets expect the Fed to hold rates in October and then raise them by a quarter point in December, according to CNBC. The October jobs report is due Nov. 6.

Why it matters for crypto

A steady job market keeps the Fed's attention on inflation, and with oil prices high, that leans toward tighter policy. Higher rates raise the appeal of cash and bonds relative to non-yielding assets like bitcoin. Crypto traders will be watching next week's decision and the Fed's tone for hints about December.