Requests for unemployment aid rise slightly in the US

The number of people in the United States who applied for jobless aid rose slightly last week as the Federal Reserve tries to cool the economy and curb inflation.

Jobless claims for the week ending Sept. 17 rose by 5,000 to 213,000, the Labor Department said Thursday. The previous week’s figure was cut by 5,000 to 208,000, the lowest since May.

Applications generally reflect layoffs.

The four-week average, which compensates for weekly volatility, fell by 6,000 to 216,750.

On Wednesday, the Federal Reserve raised its benchmark short-term rate by another three-quarters of a point, in an effort to reduce persistent inflation that is at its highest levels in decades. Although gasoline prices have been falling since the summer, those of food and other essential supplies remain high enough that the Fed has indicated it will keep raising rates until they return to normal levels.

Fed officials have pointed to the impressive resilience of US labor markets as additional justification for raising the rate five times this year, including three consecutive three-quarter-point hikes.

The central bank’s move on Wednesday raised its short-term rate, which affects loans to consumers and businesses, to between 3% and 3.25%, the highest level since early 2008. Officials forecast it will raise the rate referring to around 4.4% for the end of the year, one point more than what they forecast in June.

Fed Chairman Jerome Powell said that before bank officials consider reining in hikes, they want to feel confident that inflation is pulling back to its 2% target.

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