- Esther George, Kansas City Fed President
The number of Americans filing for unemployment benefits increased last week to a more than one-year high. Economists argued that striking telecommunications workers were possibly the main driver of a rise and said the data did not suggest a deterioration in the overall labour market. Initial jobless claims surged 20,000 to 294,000 in the week ended May 7, the Labor Department reported. That marked the highest level since February 2015. Weekly claims have risen for three weeks in a row. Yet, claims have remained below 300,000 for more than a year, extending the longest such streak since 1973. The four-week moving average of claims, considered a better measure of labour market trends as it smoothes out weekly volatility, increased 10,250 to 268,250 last week, the highest level in almost three months.
Meanwhile, Kansas City Fed President Esther George said interest rates are too low for the current US economy. She said she supports gradual rate hikes, adding that low rates can create economic risks. Low rates can cause interest-sensitive sectors to take on too much debt and grow quickly. George votes on the Fed's policymaking committee and was the only member to vote for a rate lift at the April and March meetings.
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