U.S. weekly jobless claims come in at 197,000, below estimates

U.S. initial jobless claims totaled 197,000 last week, below the 201,000 estimate. Weekly jobless claims are a gauge of labor market conditions that the Fed uses when setting interest rates. A reading above estimates can be interpreted as a sign of rising layoffs and a cooling labor market, which could support the case for a Fed rate cut. A reading below estimates can signal a resilient labor market, giving the Fed grounds to hold rates steady or raise them while focusing on curbing inflation.