The report showcases a consumer who is holding up despite higher borrowing costs, a cooling labor market, and an uncertain economic outlook.

A September rate cut by the Federal Reserve seems all but assured.

Initial claims fell by 17,000 last week, in part because of a drop in Michigan, Missouri, and Texas, states that had registered large increases in unemployment applications in prior weeks.

Unemployment is close to triggering a recession indicator that has a perfect track record over the last half-century.

Deterioration in the labor market cements the Fed's path to interest rate cuts in September.

The Federal Reserve's preferred measure of underlying U.S. inflation rose at a tame pace in June and consumer spending remained healthy—two encouraging…

GDP increased at a 2.8% annualized rate, while personal spending advanced 2.3%. "This is a perfect report for the Fed."

The deceleration bolsters the case for the Fed to lower interest rates later this year.