Good morning! It's Kristin with your daily morning digest.
The number of first-time filers for unemployment benefits dropped to 184,000 last week, according to the latest jobless claims numbers from the Labor Department. The figures were higher than expected, but remain lower than the initial jobless claims made in the weeks before the spike that followed the onset of the pandemic in March 2020.
Even with recession fears looming, a strong jobs market has bolstered the Federal Reserve's case to keep raising interest rates to combat rising inflation. Today, Fed Chair Jerome Powell is set to speak before the International Monetary Fund (IMF), and investors will listen closely to his remarks for indications that a more aggressive rate hike of half a percentage point could be coming next month.
Raising interest rates would take a bite out of inflation, which is causing the costs of travel, food, housing, and more to soar. But it also puts the squeeze on your wallet if you're looking to secure a loan or are saddled with credit card debt as the cost of borrowing gets more expensive. Higher rates have already pushed the average rate on a 30-year fixed mortgage to its highest levels since at least 2019, cooling homebuying interest.
Also, in case you didn't know, every week I answer a financial question from a reader just like you. My Two Cents is a weekly column all about helping you better manage your money. If you're ready to (anonymously) tell us about a personal finance situation you're dealing with and want my two cents on how to handle it, submit your question now by filling out this form.
And don't miss The Balance's next Financial Literacy Month Instagram Live series on Tuesday, April 26, at 12 noon Eastern, when I talk with former Wall Street trader Vivian Tu, founder of YourRichBFF. Follow The Balance on Instagram to get updates on all of our live events this month!
- Kristin
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