For the week ending September 7, initial jobless claims in the US rose by 2,000 to 230,000. The slight increase in claims suggests that layoffs remain at low levels, though the labor market is cooling. It's worth noting that the data from last week includes the Labor Day holiday. Data tends to be volatile during public holidays. However, the number has remained relatively unchanged since its decline from an 11-month high of 250,000 in late July.

The slowdown in the labor market is driven by businesses scaling back hiring as rising interest rates dampen demand across the economy. Against this backdrop of a cooling jobs market, the Federal Reserve is expected to begin its easing cycle next Wednesday. After a significant slowdown in the year-on-year rise of the CPI in August, the Fed is likely to cut rates by 25 basis points, even though inflation remains somewhat sticky. (Gold Ten)