US jobless claims seen at 233,000 last week; below expected 241,000

Investing.com - The number of Americans filing new applications for unemployment benefits fell more than expected last week, adding to the uncertainty over the conditions in the labor market as the U.S. Federal Reserve considers monetary policy.

Initial claims for state unemployment benefits fell 17,000 to a seasonally adjusted 233,000 for the week ended Aug. 3. Economists had forecast 241,000 claims for the latest week.

Claims had come in at a revised 250,000 the previous week, the highest level since August last year. 

The number of people receiving benefits after an initial week of aid, known as continuing claims, rose 6,000 to a seasonally adjusted 1.875 million.

The U.S. central bank has maintained its benchmark overnight interest rate in the current 5.25%-5.50% range for the past year. 

Fed Chair Jerome Powell said last week that while he viewed the changes in the labor market as "broadly consistent with a normalization process," policymakers were "closely monitoring to see whether it starts to show signs that it's more than that."

The monthly jobs report showed last week that U.S. job growth slowed more than expected in July, with only 114,000 jobs added, while the unemployment rate increased to 4.3%.

This led to raised expectations that the Federal Reserve will start easing policy in September, potentially with a big half-percentage-point interest rate cut.