U.S. initial jobless claims fell 4,000 to a seasonally adjusted 203,000 for the week ended Aug. 22, a second straight weekly decline that undershot the 208,000 consensus and kept filings near the low end of this year’s 189,000–230,000 range. Continuing claims dropped 18,000 to 1.778 million in the week ended Aug. 15, the lowest in about a month and covering the August payrolls survey period, while the unemployment rate stood at 4.1%. The same day’s Census data showed the July goods trade deficit widening to $118.8 billion from $101.4 billion, the largest gap since March 2025, as exports fell 2.9% to $199.4 billion and imports rose 3.7% to $318.2 billion on an 11.3% jump in capital-goods shipments tied to the AI investment boom. Economists said trade is on course to subtract roughly a percentage point from third-quarter GDP after a 1.14-point drag in the second quarter. Labor-market stability gives the Federal Reserve more room to focus on inflation that has run above its 2% target for 65 months and held at 3.7% last month, a central theme as policymakers gather at Jackson Hole.