The number of Americans filing new claims for unemployment benefits rose moderately last week, showing no signs yet that tightening credit conditions were having a material impact on the tight labor market.
But the risks to the economy are mounting. Other data on Thursday showed corporate profits in the fourth quarter declining by the most in five years, in part because of penalties and fines imposed on several businesses. That included a $1.7 billion civil penalty against Wells Fargo for what the government said was to “settle allegations that it illegally assessed fees and interest charges on auto and car loans.”
“The song remains the same for the labor market,” said Conrad DeQuadros, senior economic advisor at Brean Capital in New York. “Layoffs remain at very low levels and the labor market remains extremely tight.”
