-Federal Reserve
The number of Americans seeking unemployment benefits plunged to the lowest level in 15 years in the week ended January 23, a day after the Fed painted an optimistic outlook for the world's number one economy. According to the US Department of Labor, initial jobless claims dropped to 265,000, following a revised 308,000 in the preceding week. It was the biggest weekly fall since November 2012. However, the data might be a subject to revision, as it included the Martin Luther King holiday, meaning fewer claims were likely processed. The four-week moving average of claims, considered a better gauge of labour market trends as it strips out weekly volatility, declined 8,250 last week to 298,500. The report also revealed the number of people still receiving benefits after an initial week of aid dropped 71,000 to 2.39 million in the week ended January 17.
A separate report showed that pending home sales unexpectedly dropped in December. The National Association of Realtors monthly index, which measures signed contracts to purchase existing homes plunged 3.7% from a downwardly revised November reading, but it remained 6.1% above December of 2013. Analysts, however, had expected a 0.5% gain. That was the lowest reading for the index since April and the biggest month-on-month decline in a year. The Fed reiterated in January that the housing recovery "remains slow".
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