Tony Welch: Rising initial jobless claims show weak labor market

According to ChainCatcher, SignatureFD analyst Tony Welch said that the higher-than-expected initial unemployment claims have a greater impact on the market than expected August inflation. He noted that the CPI's inflation rate of nearly 3% is drifting away from the Fed's 2% target, and a weak PPI suggests producers may be digesting tariff costs. Welch believes the U.S. labor market has not collapsed, which leaves the Fed likely to cut interest rates by 25 basis points next week, rather than the 50 basis points some forecasters think.