U.S. initial jobless claims fall to 254,000

The number of Americans initially applying for unemployment aid fell to 254,000, as the Fed raised the interest rate on a strengthening labor market and rising inflation.

In the week ending December 10, the advance figure of seasonally adjusted initial claims for jobless benefits was 254,000, a decrease of 4,000 from the unrevised level of the previous week, said the U.S. Labor Department on Thursday.

The four-week moving average, which helps smooth out week-to-week volatility increased 5,250 from the previous week's unrevised average to 257,750.

This marks 93 consecutive weeks of initial claims below 300,000, a benchmark for real job growth or loss in the economy, the longest streak since 1970, said the Labor Department.

Meanwhile, the advance figure of seasonally adjusted insured unemployment during the week ending December 3 rose 11,000 from the previous week to 2,018,000.

U.S. Federal Reserve on Wednesday raised the benchmark interest rate by 25 basis points, the first and only time in 2016, saying the moderate economic expansion, continued strengthening of labor market and the improvement in inflation condition supported the central bank to raise interest rate after nearly a one-year pause.

U.S. job market continues steady expansion in November with jobless rate down to nine-year low, said the Labor Department earlier this month.

Total nonfarm payroll employment rose by 178,000 in November, as the jobless rate went down from October's 4.9 percent to 4.6 percent, the lowest level since August, 2007. Enditem