Fed Favors Inflation Fight as US Labor Market Heats Up Again

The US labor market continues to show signs of stability, with applications for unemployment benefits falling to an almost 60-year low. This development bodes well for the Federal Reserve's focus on inflation, as a strong labor market typically helps keep prices under control.

The European Central Bank has taken a more cautious approach, rejecting an immediate interest rate hike and instead laying the groundwork for a possible increase in September. President Christine Lagarde emphasized that any decision would be data-driven and based on the bank's inflation projections.