Why did US GDP decrease and unemployment claims increase?
Today, the US GDP report dropped from 1.6% to 1.3% while Jobless Claims increased from 218 to 219 but you know what, this was possible because the FED kept interest rates unchanged recently
Why can I say it might be because the Fed kept interest rates unchanged?
With NO interest rate cuts, it has made the USD too strong against other country's currencies and it will cause any country trading with the US to stop buying if it is not important. Currently, a lot of companies in the US do remote work by finding other workers outside the US so they can pay cheaper on both wages and taxes by using the power of the USD and that's why. why that also makes job opportunities for US citizens no longer accepted and causes Unemployment Claims to be higher than before
Where more people are unemployed means there are more people who cannot afford to buy goods in the US unless they are important to them, which will lead to demand for US Domestic Products less and less demand will cause any company in America that produces goods to reduce their output
So what the Fed did with its decision NOT to cut interest rates is correlated with recent US GDP and Unemployment Claims
Now we will see what actions the Fed will take regarding this issue because if this issue continues to grow, it will affect the US economy, so, I bet that the Fed board's speech will change their decision