US new unemployment claims hit 227,000 in first week of February, exceeding expectations.

Last week, during the first week of February (February 1-7), initial U.S. jobless claims reached 227,000, exceeding expectations of 222,000. Weekly jobless claims are a key indicator of the labor market that the Federal Reserve uses when determining interest rates. A higher-than-expected number signals that companies are increasing layoffs, indicating a cooling labor market and providing justification for the Fed to cut rates. Conversely, a lower-than-expected number signals a stronger labor market and justifies the Fed's focus on controlling inflation, either holding rates steady or raising them.