"The problems are more on the hiring side than the layoffs side"
- Ryan Sweet, a senior economist at Moody's Analytics Inc.
The number of Americans who filed jobless benefit claims fell less than expected in the week ending September 15, the U.S. Department of Labor reported. Initial jobless claims dropped by 3,000 to a seasonally adjusted 382,000, compared to expectations for a fall of 10,000 to 375,000, while down from 385,000 in the previous week. The four-week moving average rose by 2,000 to 377,750.
"The problems are more on the hiring side than the layoffs side," said Ryan Sweet, a senior economist at Moody's Analytics Inc. in West Chester, Pennsylvania. "If they panic and start cutting workers, that would raise an immediate red flag because layoffs would be a recipe for another recession."
"If the outlook for the labor market does not improve substantially, the committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases and employ its other policy tools as appropriate," said the Federal Open Market Committee.
The Standard & Poor's 500 retreated 0.05 per cent to 1,460.26. The Dow Jones Industrial Average grew 0.14 per cent to 13,596.93. The Nasdaq Composite gave up 0.21 per cent to 3,175.96.
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