Jobless claims reached a 49-year-low last week, which may ease concerns about the economy.

There were concerns over a potential slowdown in the labor market given recent financial volatility, but the reported numbers released by the Labor Department suggests the volatility has yet to hamper economic momentum significantly.

“Markets can breathe a sigh of relief that the economy is not going all wobbly,” said Chris Rupkey, chief economist at MUFG in New York. “No inflation pressures building and a tight labor market is news that tells the Fed they are right to continue to raise interest rates at next week’s meeting.”

According to Reuters:

Tightening labor market conditions bolster expectations that the Federal Reserve will raise interest rates at its Dec. 18-19 policy meeting. With inflation likely to remain tame through the first half of 2019, economists see fewer rate hikes next year.

The Fed has increased borrowing costs three times this year.

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