and factory production in September in suggesting sustained momentum in the economy. The stream of upbeat economic data bolstered expectations that the Federal Reserve could keep interest rates higher for longer. Financial markets continued to discount a rate hike next month because of soaring U.S. Treasury yields.
Though the labor market is gradually cooling, conditions remain tight, with claims at the very low end of their range of 194,000 to 265,000 for this year. Unadjusted claims declined 18,561 to 181,181 last week. There were large decreases in Texas, New York, New Jersey, Georgia and California, which more than offset a notable rise in Tennessee.
But Powell also acknowledged the recent rise in geopolitical tensions and tighter financial conditions.resilience. The labor market is driving consumer spending and the overall economy, ultimately keeping inflation elevated. The economy is expected to have grown in the third quarter at its fastest pace since late 2021.