Economic risks for Fed rise: Analysts

Recent economic figures from the United States suggest that the Federal Reserve's efforts to fight inflation may be working but it risks losing the war on keeping the economy afloat, according to analysts.

The increase in the consumer price index, or CPI, fell below 5 percent in April for the first time in two years, while jobless claims increased, according to a report released on Thursday.

The number of US people filing new claims for unemployment benefits jumped to an 18-month high last week. Initial claims for state unemployment benefits increased 22,000 to a seasonally adjusted 264,000 for the week ended May 6, the highest reading since October 2021.