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By Kristin Myers, Editor-in-Chief

What's Happening Today

Happy Friday! It's Kristin with your daily morning digest.

Stocks are lower today after hawkish comments from Fed Chair Jerome Powell yesterday at the International Monetary Fund (IMF). Powell stated that a 50 basis point hike (or half of a percentage point) would be "on the table" for the next Fed meeting in May, indicating that more aggressive interest rate hikes are likely on the way. In the last meeting, the Fed decided to raise rates for the first time in years by a quarter of a percentage point.

Bond yields jumped on Powell's comments as higher rates make equities less attractive. By raising rates, the Fed is taking a big swing at inflation, which has risen 8.5% from last year. But higher rates don't just take a bite out of company profits, hurting investors. They also make borrowing more expensive, so expect to pay more if you try to get a loan to buy a car or a house. Credit card holders can also be impacted, as higher interest rates mean that credit card debt will only get pricier.

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, about creating new revenue streams through investing. Follow The Balance on Instagram to get updates on all of our live events this month!

- Kristin

Editors' Picks

Powell Says Taming Inflation 'Absolutely Essential,' and a 50 Basis Point Hike Possible for May (CNBC)

Forgiveness Gets Closer for Some Federal Student Loans (The Balance)

The Optimal Workweek Is Two Days in the Office, Not Three (The Wall Street Journal)

Why Do I Need Health Insurance? (The Balance)

How Much Interest Does a Roth IRA Earn? (The Balance)

Why You Should (and Shouldn't) Max Out Your Roth IRA (The Balance)

Why I Bonds Are a Safe Investment (The Balance)

How Much Rent Can I Get for My House? (The Balance)

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Off the Charts

Consumer prices (especially for gas and groceries) are currently winning in their tug-of-war with wages. Despite a hot job market where pay increases are common, inflation has eroded consumer purchasing power, wiping out pandemic pay raises. A report by the Bureau of Labor Statistics showed that over the two-year period between February 2020 and March 2022, the average wage wound up being exactly the same—$11.03.

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Number of the Day

1% - That's the percentage of the workforce that was collecting unemployment benefits for the week that ended April 9, the lowest in data going back to 1971.

For The Balance's third Financial Literacy Month IG live series, we're discussing the topic of creating revenue streams through investing. Join The Balance Editor-in-Chief Kristin Myers with featured guest Vivian Tu, former Wall Street trader, and founder of YourRichBFF, on Tuesday, April 26, at 12 p.m. EST. Follow us on Instagram to get updates on The Balance's live events this month!