The number of Americans filing for unemployment benefits fell last week, pointing to a tightening labor market that likely keeps the Federal Reserve on course to announce plans next month to start reducing its massive bond portfolio.
Labor market strength was also underscored by another report on Thursday showing U.S.-based employers in July announced the fewest job cuts in eight months.
“The labor market remains tight as a drum even if it is not throwing off the sparks of higher wages and more inflation,” said Chris Rupkey, chief economist at MUFG in New York.
