NEW YORK — JPMorgan Chase & Co. has agreed to pay $264.4 million in fines to federal authorities to settle criminal and civil charges that it hired friends and relatives of Chinese officials in order to gain access to banking deals.

JPMorgan's Asia affiliate allegedly created a quid pro quo program that would hire the children and friends of high-ranking Chinese officials, regardless of the person's qualifications, in order to gain favor and win banking deals.

“Awarding prestigious employment opportunities to unqualified individuals in order to influence government officials is corruption, plain and simple,” Assistant Attorney General Leslie Caldwell said.

The United States has one of the strictest bribery laws in the world, known as the Foreign Corrupt Practices Act of 1977, where it effectively bans U.S. companies from paying foreign government officials to obtain or retain business. While JPMorgan did not pay Chinese officials directly, federal authorities said the hiring of unqualified persons related to Chinese officials was effectively the same thing.

The Justice Department said it agreed to the non-prosecution agreement due in part to JPMorgan's cooperation.

Consumer prices rise in October

Rising energy costs pushed consumer prices higher in October, but overall inflation remains tame.

The Labor Department said Thursday that its consumer price index rose 0.4 percent last month, the most since April and up from a 0.3 percent increase in September. Over the past year, consumer prices are up 1.6 percent. That's the most since October 2014 but below the Federal Reserve's 2 percent annual inflation target.

Despite low inflation, the Fed has hinted that it might resume raising U.S. interest rate at its next meeting, Dec. 13-14.

Energy prices rose 3.5 percent last month, led by a 7 percent hike in gasoline prices. Food prices were unchanged for the fourth straight month.

Jobless claims lowest in decades

The number of people seeking U.S. unemployment benefits fell last week to the lowest level since 1973, evidence that businesses are confident enough in the economy to hold onto their workers.

Weekly applications for jobless benefits fell 19,000 to a seasonally adjusted 235,000, the Labor Department said Thursday. The four-week average, a less-volatile measure, dropped to 253,500.

The number of people receiving benefits fell 66,000 to 1.98 million, the fewest in more than 16 years.

Applications are a proxy for layoffs and have remained below 300,000 for 89 straight weeks. That's the longest streak since 1970.

THE BOTTOM LINE

25.5% The rise in home construction, to a seasonally adjusted 1.3 million in October, the Commerce Department said Thursday. That is the biggest gain since July 1982. New construction is also at the highest level since August 2007, months before the Great Recession began. Americans are clamoring to buy homes, but there are few properties on the market. That has driven up prices. Mortgage rates remain low, despite a big increase this week.