CLAIMS CONUNDRUM

Weekly first-time claims for unemployment fell 22,000, the biggest decline in three months, to a seasonally adjusted 187,000, the lowest level of new applications since September 1969. While the drop was probably due to some quirks, the consistently low level is hard to ignore. Moreover, the continued restrained supply of available workers has kept the unemployment rate low despite weak hiring and that allows the Fed to perseverate about inflation.