Jobless claims are rising

If there's one thing that Fed Chief Ben Bernanke doesn't need right now it's real weakness in the labor market. Unfortunately, another hefty increase in jobless claims earlier today adds to the recent (and ominous) trend as shown in the chart below from Econoday.The four-week moving average has risen to 343,000, up 4,250 from last week, and is now at its highest level in two years. Like a lot of other statistics that are making two-year highs, this one too will not likely fall back in line as it did following Hurricane Katrina in 2005.

Evidence is mounting for a rather bleak period of economic reports early in 2008 - slowing growth, high inflation, and now perhaps a much weaker job market - just as we begin an election year.