US initial jobless claims unexpectedly fall

Initial applications for unemployment benefits in the US edged lower in the week ended June 27, pointing to continued resilience in the US labor market.

The Labor Department reported the figure Thursday. The decline surprised economists, who had expected a modest increase. The prior week's figure was revised slightly lower.

The data follows a stronger-than-expected payrolls report for June, which also indicated a tight labor market. The Federal Reserve has held its benchmark interest rate steady since July 2023 as it monitors inflation. Fed Chair Jerome Powell has said the central bank needs greater confidence that price pressures are sustainably easing before cutting rates.

The Fed's next policy meeting is scheduled for July 30-31.