US initial jobless claims come in at 206K, below forecast

U.S. initial jobless claims for the second week of February totaled 206,000, coming in below the forecast of 229,000. Weekly jobless claims are a key indicator the U.S. Federal Reserve uses to gauge the health of the labor market when making interest rate decisions. A higher-than-expected number of claims can signal that companies are increasing layoffs, suggesting a cooling labor market and potentially providing the Fed with a reason to cut interest rates. Conversely, a lower-than-expected figure indicates a robust labor market, which could give the Fed grounds to hold or raise rates to focus on curbing inflation.