“US weekly jobless claims decline more than expected”
January 30, 2025
“…Initial claims for state unemployment benefits dropped 16,000 to a seasonally adjusted 207,000 for the week ended Jan. 25, the Labor Department said on Thursday. Economists polled by Reuters had forecast 220,000 claims for the latest week…
Companies have scaled back on hiring in response to still tight monetary policy and employers are also waiting to see how the policies of President Donald Trump’s new administration, including tax cuts, tariffs and deportations, shape up before adding headcounts.
Economists have deemed these policies inflationary. The Federal Reserve on Wednesday left its benchmark overnight interest rate in the 4.25%-4.50% range, having reduced it by 100 basis points since September, when the U.S. central bank launched its policy easing cycle…”
https://finance.yahoo.com/news/us-weekly-jobless-claims-decline-134414855.html
I keep hearing that “tariffs are inflationary.” This is not true. Short term they are because foreign products will increase in price. Long term domestic products will sell more thus creating more jobs for locals. Why are so many people 1 dimensional thinkers? It doesn’t take a genius to think 2 steps ahead — I mean really.
Tariffs increase demand for local products. Supply will increase to meet demand. Long term increase of product supply is deflationary.