Tony Welch: Rising Initial Jobless Claims Indicate a Weakening Labor Market

According to ChainCatcher, citing Golden Ten Data, SignatureFD analyst Tony Welch stated that higher-than-expected initial jobless claims had a greater impact on the market than the anticipated August inflation. He pointed out that a CPI inflation rate close to 3% is drifting further from the Federal Reserve's 2% target, and the weak PPI indicates that producers may be absorbing tariff costs. Welch believes that the US labor market has not collapsed, which makes it more likely that the Federal Reserve will cut interest rates by 25 basis points next week, rather than the 50 basis points predicted by some analysts.