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By Kristin Myers, Editor-in-Chief

What's Happening Today

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

Federal Reserve policymakers meet tomorrow and Wednesday to decide if the central bank will raise interest rates again, and if so, by how much. Fed Chair Jerome Powell has indicated that a rate hike of half a percentage point will be on the table, as the central bank looks to move more aggressively to counter rising inflation.

Higher interest rates can be a double-edged sword for U.S. consumers. While rate hikes help cool inflation, which is taking a bite out of all our wallets as prices rise, it also makes borrowing money more expensive, effectively throwing cold water on interest to purchase homes, buy cars, or take out other loans.

Higher rates also impact investor portfolios, as they eat away at future profits for companies. That's particularly bad for high-growth companies like those that dominate the tech sector, which has seen sell-offs in the last few trading sessions—the tech-heavy Nasdaq concluded its worst month in over a decade last week.

In a positive sign for the country's manufacturing sector, the Institute for Supply Management released its report on the Purchasing Managers' Index (PMI) for April this morning, showing that the nation's manufacturing sector continued to grow last month, for the 23rd consecutive month, albeit at a slower pace. The index came in at a reading of 55.4%, lower than March's 57.1%, but still a sign of continued expansion. Any figure above 50 indicates that managers believe business conditions are improving.

And don't forget to tune in on Wednesday, May 4 at 12 noon Eastern, when I talk with Teri Ijeoma, founder of financial course "Trade and Travel." Teri is a former school principal turned multimillionaire, and we'll be talking about how to enjoy your wealth. It's our last conversation as part of The Balance's Financial Literacy Month Instagram Live series. To catch this talk, follow The Balance on Instagram!

- Kristin

Editors' Picks

Labor Shortages Slowing Growth, Manufacturers Say (The Balance)

Americans Are Showing Inflation Fatigue, and Some Companies See a Breaking Point (The Wall Street Journal)

Has inflation Reached a Peak? Three Signs That Prices Could Soon Come Down (CNN Business)

Bored Ape Metaverse Frenzy Raises Millions, Crashes Ethereum (Bloomberg)

Cryptocurrency Tokens vs. Coins: What's the Difference? (The Balance)

Roth IRA Conversion Taxes: What You Should Know (The Balance)

Buying a House Without a Mortgage? Here's How To Do It (The Balance)

Should You Pay Equal Rent When Your Partner Earns More Money? (The Balance)

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Off the Charts

Some workers have seen their paychecks increase faster than prices for everyday products, but with inflation heating up, there are a lot fewer of those workers than there used to be.

As shown in this chart, 44.7% of workers got above-inflation pay raises in March, down from as many as 58.3% only a little over a year ago, according to an analysis this week by the job-hunting site Indeed.

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Number of the Day

$48,620 - That's how much college students, inspired by the robust job market and reports of rising wages, are overestimating the starting salary for their first job.

For The Balance's fourth Financial Literacy Month IG live series, we're discussing the topic of wealth and its enjoyment. Join The Balance Editor-in-Chief Kristin Myers with featured guest Teri Ijeoma, master investor and founder of Trade and Travel, on Wednesday, May 4, at 12 p.m. EST. Follow us on Instagram to get updates on The Balance's live events this month!