File - A hiring sign is displayed in Riverwoods, Ill., on April 16, 2024. .
In the week that ended Aug. 3, 1.86 million Americans were collecting jobless benefits, down by 7,000 from the week before. But claims have since fallen two straight weeks, dispelling worries that the job market was deteriorating rapidly rather than just slowing. The Federal Reserve, fighting inflation that hit a four-decade just over two years ago, raised its benchmark interest rate 11 times in 2022 and 2023, taking it to a 23-year high. Inflation has come down steadily — from 9.1% in June 2022 to a three-year low of 2.9% last month. Despite higher borrowing costs, the economy and hiring kept cruising along, defying widespread fears that the United States would sink into recession.