America In Focus: Fed officials eye higher rates; unemployment claims fall
Summary
Federal Reserve officials say they may raise interest rates again if inflation stays high. Meanwhile, unemployment claims in the U.S. fell last week, showing that job layoffs remain low. Mortgage rates dropped slightly but are still higher than last year, which may slow home buying.Key Facts
- The Federal Reserve kept its short-term interest rate at about 3.6% in July but signaled possible hikes if inflation does not improve.
- Inflation has eased a bit, but higher gas prices due to Middle East conflicts have affected overall costs.
- Wall Street expects the Fed to hold rates steady in September and possibly increase them in December.
- The average 30-year mortgage rate fell slightly to 6.65%, down from 6.67% last week but still above 6.58% a year ago.
- The 15-year mortgage rate also eased to 5.95% but remains higher than last year’s 5.69%.
- Higher mortgage rates have reduced homebuyers’ ability to purchase houses, leading to slower home sales.
- U.S. unemployment claims decreased to 206,000 last week from 212,000 the previous week, indicating low layoffs.
- The four-week average of jobless claims rose slightly to 204,000 but stays within a low historical range.
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