The number of initial jobless claims in the United States fell more than expected, but the impact of tariffs may soon be reflected in the data

U.S. initial jobless claims fell more sharply than expected last week, suggesting the labor market continues to hold steady even as the risks posed by tariffs grow. The Labor Department reported that initial jobless claims fell by 13,000 seasonally adjusted to 228,000 for the week ending May 3, compared with market expectations of 230,000. The drop partially offset the impact of New York State's school spring break, which led to jobless claims hitting a two-month high. However, economists said it was only a matter of time before weakness in business and consumer surveys affected so-called hard data such as initial jobless claims, inflation and the jobs report. On Wednesday, the Federal Reserve kept interest rates in a range of 4.25% to 4.50%, and policymakers noted that "the risk of rising unemployment and inflation has increased."