Economics
Rising Prices Keep Fed Hikes on Track
- Weekly U.S. jobless claims fall to almost five-decade low
- Data reflect estimate of $30 billion rise in one-time bonuses
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The U.S. economy showed signs of impending strength, as recent tax cuts boosted Americans’ spending power, unemployment claims fell to an almost five-decade low and a key price gauge watched by the Federal Reserve rose by the most in a year.
Real disposable income, or after-tax earnings adjusted for inflation, advanced 0.6 percent in January from the prior month, the biggest gain since 2015 and reflecting lower taxes, the Commerce Department reported Thursday. A measure of prices excluding food and energy rose 0.3 percent. A separate Labor Department report showed filings for unemployment benefits fell to 210,000 last week, the fewest since 1969.