Weekly unemployment filings in the US nudged higher, climbing to 215,000 for the week ending May 23. That’s an increase of 5,000 from the prior week’s revised figure of 210,000, and it marks the highest reading in several weeks.
The four-week moving average of initial claims, which smooths out week-to-week noise, settled at 209,000. Unadjusted initial claims came in at 191,134. The insured unemployment rate held steady at 1.1%.
To put these figures in perspective, jobless claims during the pandemic peak in 2020 routinely exceeded 6 million per week. Even during more modest downturns, initial filings tend to push well above 300,000 before economists start getting genuinely concerned.
The Federal Reserve has been walking a tightrope between managing inflation and not strangling growth. A resilient labor market gives the Fed room to be patient, reducing the urgency for rate cuts. When employers aren’t laying people off in meaningful numbers, the central bank has less justification to lower borrowing costs.
For risk assets, including crypto, lower interest rates generally push capital toward higher-risk, higher-reward investments like Bitcoin and other digital assets. Higher rates, or rates that stay elevated for longer, tend to keep money parked in safer vehicles like Treasuries.
