The number of Americans filing for unemployment benefits rose more than expected over the last week of July. However, the underlying trend continued to indicate labor market stability.
According to the Labor Department, initial claims for unemployment benefits increased by 14,000 to a seasonally adjusted level of 266,000. Meanwhile, economists had expected a rise to 260,000. Still, jobless claims remain below 300,000, a level associated with healthy labor market conditions.
US government bond prices remained unchanged. The Federal Reserve said that the labor market "strengthened" and that nonfarm payrolls pointed to an "increase in labor utilization in recent months." The US regulator left interest rates unchanged amid concerns over consistently low inflation.
Moreover, the US economy added 287,000 jobs in June, the largest increase this year. The country’s GDP growth came in at 2.6% in the second quarter.
