The number of Americans seeking unemployment benefits for the first time unexpectedly fell last week to the lowest since the 1960s, indicating the U.S. job market continues on an even keel.
The US job market continues to show signs of resilience as the initial jobless claims for the week ending 18th July 2026 dropped to 187K, or -22K lower than the previous week. The latest number is the lowest reading since Sep-69 and contrary to market consensus which anticipated for the new filings to increase to 212K.
The number of continuing claims also dropped to 1.796m (previous week: 1.798m) for the week ending 11th July 2026. The latest level is now at 6-week low, signalling encouraging hiring as less number of Americans rely on supports from jobless benefits.
Given the stability in the job market, MBSB believes the Fed will keep it’s focus towards containing inflationary pressures which remained above its +2% target. The renewed rise in oil and energy prices would keep inflation elevated. Market expectations continue to price in possible rate hike in Sep-26, but anticipating no change to the fed funds rate at the upcoming FOMC meeting next week.
