U.S. jobless claims come in at 206,000, below forecast

U.S. initial jobless claims totaled 206,000 last week, below the forecast of 210,000. Weekly jobless claims are one indicator the Fed uses to gauge the labor market when setting interest rates. A reading above forecasts can signal rising layoffs and a cooling labor market, giving the Fed grounds to cut rates, while a reading below forecasts can point to labor-market resilience and support keeping rates unchanged or raising them to stay focused on curbing inflation.