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By Kristin Myers, Editor-in-Chief

What's Happening Today

Good morning! It's Kristin with your daily morning digest.

As expected, the Federal Reserve decided to raise its benchmark rate by a quarter of a percentage point yesterday, forecasting another six interest rate hikes this year to help fight rising inflation. With higher rates, credit card annual percentage rates (APRs), mortgages, car loans, and other kinds of consumer and business loans will become more expensive for borrowers. While equities initially rose after the announcement, stocks are sliding today after back-to-back rallies.

In a sign of continued strength in the labor market, fewer people than expected made first-time unemployment benefit claims last week, according to the latest claims figures from the Labor Department. Initial jobless claims declined by 15,000 to 214,000. The tight labor market has a record number of small businesses raising wages, though wage gaps between men and women persist, with industry-specific data illuminating how wide-ranging the divide is.

U.S. homebuilding jumped in February, with housing starts rising 6.8% from January at 1.77 million units, the most since 2006. The new construction will help supply a housing market that continues to be red hot, even as rising mortgage rates are expected to cool housing sales.

- Kristin

Editors' Picks

Jobless Claims Fall Again, More New Houses Are Started (The Balance)

Fed Lifts Benchmark Interest Rate, as Expected (The Balance)

Federal Reserve Dictionary: Your Guide to the Jargon (The Balance)

Shoppers Reach Their Limits on Some Price Increases (The Wall Street Journal)

How To Take Advantage of Rising Interest Rates (CNN)

Why Is Investing Important? (The Balance)

Are There Tax Consequences of Rolling a 401(k) Into a Roth IRA? (The Balance)

Off the Charts

The gender wage gap may stand at 17%, but in some occupations, women's average earnings run at a far bigger deficit compared to men's.

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Number of the Day

2023 - That's how soon the Federal Reserve's benchmark rate may reach a 14-year high, showing just how quickly the central bank now plans to raise borrowing costs.

Season 2 of the "Money Confidential" podcast is back with "Taxes in Ten," a six-episode mini-season covering your top tax questions. Host and nationally recognized money expert, Stefanie O'Connell Rodriguez, is teaming up with The Balance's very own Editor-in-Chief, Kristin Myers, as well as Caleb Silver, Editor-in-Chief of Investopedia, to talk about everything from doing your own taxes to the specific tax considerations of different life stages. You can listen now to "Taxes in Ten."