US Unemployment Claims Decrease to 238,000 After 10-Month High

The number of Americans applying for unemployment benefits decreased last week, with jobless claims falling to 238,000 from a 10-month high. Despite this slight improvement, weekly claims have been rising recently, indicating a potential weakening in demand for workers. The U.S. labor market has remained resilient, with low levels of layoffs by historical standards. However, there has been a gradual increase in unemployment benefits recipients, reaching 1.83 million people in June. The economy has shown signs of slowing down, possibly due to higher borrowing costs and inflation remaining above the Federal Reserve's target. Fed policymakers have adjusted their plans for rate cuts, now expecting only one cut instead of three.