The US saw a decrease in the number of people applying for unemployment benefits for the third week in a row. However, while this is positive for American workers, it could pose a challenge in the Federal Reserve’s battle against inflation. The Fed has been increasing its benchmark interest rate to help cool the economy, ease the labour market and reduce inflation. The drop is significant, as applications for jobless claims in the US fell to 190,000 from 192,000 the previous week. Applications for unemployment benefits are seen as a proxy for the quantity of layoffs in the US.

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