The number of Americans filing new claims for unemployment benefits increased less than expected last week, pointing to a still-tight labour market, while the economy rebounded faster than previously estimated in the third quarter.Labour market strength, which also was underscored by some shrinking of unemployment rolls in early December after mostly expanding since October, raised the risk that the Federal Reserve could continue raising interest rates to a higher level and keep them there for a while as it tackles inflation. The US central bank is trying to cool demand for everything from housing to labour to bring inflation back to its 2 percent target.“The economy isn’t quite as close to death’s door as markets had thought,” said Christopher Rupkey, chief economist at FWDBONDS in New York. “The Fed may well need to raise interest rates even higher in 2023 because the economy isn’t slowing so upward price pressures may persist.”
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