Jobless Claims Unexpectedly Rose Again

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It’s Thursday and as usual the news is bad. Jobless claims have unexpectedly risen again. Of course, the numbers reported last week were revised upward, and so will this “surprise” number.

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New claims for unemployment benefits took an unexpected jump in the latest week, raising more concerns about the struggling job market and providing further incentive for the Federal Reserve to jump in and help the economy.

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The Labor Department reported Thursday that seasonally-adjusted initial claims rose 4,000 to 372,000. That’s compared to a decline of 1,000 that economists on average had been expecting.

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Expect the Fed to act with more monetary stimulus shortly.

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Many Federal Reserve policy makers said additional stimulus probably will be needed soon unless the economy shows signs of a durable pickup, according to minutes of their most recent meeting released yesterday.

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“Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery,” according to the record of the Federal Open Market Committee’s July 31- Aug. 1.

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Fed Chairman Ben S. Bernanke could signal new measures to support the expansion in a speech next week.

What distraction will Obama come up with next to take everyone’s attention away from this rotten economy?