GoldPrice

A record number of Americans applied for jobless benefits last week as the impact of the coronavirus pandemic begins to make itself felt throughout the US economy. A staggering 3.283 million people filed for unemployment during the week ended March 21, far surpassing the previous record of 700,000 which occurred in 1982. The figure is far worse than any economic forecast, and adds to the 281,000 people who applied for benefits the week before.

Home prices rose 3.8% in the 12 months through December, according to the S&P CoreLogic Case-Shiller National Home Price Index. The gains in December followed a 3.5% increase in the 12 months through December as home prices heated up toward the end of 2019.

The latest report from the National Association of Realtors (NAR) indicated a 1.3% drop in existing home sales for the month of January, with sales falling to a seasonally adjusted annual rate of 5.46 million units. While sales dropped, they were higher than expected, with a 1.8% to 5.43 million units drop initially forecast.

The number of Americans filing for unemployment benefits hit the lowest point in nine months last week, pointing to ongoing strength in the labor market. Claims for the week ended February 01 dropped to 202,000 vs. 215,000 expected.

The Federal Reserve Chairman Jerome Powell has reposed his faith in the strength of the US domestic economy which is based on lower taxes and less regulations. Expressing his satisfaction during a Q-and-A session with Dallas Fed President Robert Kaplan, Powell said, “I am very happy about the state of the economy now.”

The much-awaited US midterm elections have resulted in the Democrats barely gaining control of the House of Representatives, while the Republicans maintain control in the Senate and even increase their lead.