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By Kristin Myers, Editor-in-Chief

What's Happening Today

Today is not the day to stare at your investment account. Markets are continuing to fall today after tumbling last week on the heels of Federal Reserve Chair Jerome Powell's speech. Powell indicated Friday that the central bank will remain hawkish in its stance, and will continue to raise interest rates as it tries to bring down inflation.

We'd all love to see prices on goods and services decline, but tight monetary policy is a balancing act: Higher interest rates also make it more expensive to borrow money for big-ticket items, and to carry credit card debt. And let's not forget that the higher interest rates go, the more likely that the U.S. could tip into a recession.

On Friday, the Labor Department's August jobs report could strengthen or weaken the Fed's case that the economy is strong enough to handle higher rates: If more jobs were added than expected (and the numbers were as good as July), then that means that employers are continuing to hire workers. The more people are employed, the more we'll have money to pay our bills and buy things, and that helps keep the economy going. But labor market weakness could indicate that layoffs are coming and that a recession might be here sooner than we'd like.

We'll get a snapshot of the housing market tomorrow when the Case-Shiller Housing Index is released, revealing if home prices have fallen—and by how much. We'll also hear from several policymakers at the Federal Reserve throughout the week, and you can be sure that investors will be paying close attention to their remarks. That could make this week a bumpy one in the markets, so don't be too alarmed if there's a lot of volatility.

- Kristin

Editors' Picks

Here's What a $2 Million Retirement Looks Like in America (The Wall Street Journal)

How To Protect Retirement Savings From Stock Market Volatility (The Balance)

Should You Invest During a Recession? (The Balance)

Biden Forgave My Student Loans. What Should I Do With the Savings? (The Balance)

Biden Administration To Stop Sending Free At-Home Covid-19 Tests Friday (CNBC)

Everyone's an Energy Trader as Power Bills Hit the Sky in the US (Bloomberg)

How Do Bitcoin Credit and Debit Cards Work? (The Balance)

Term of the Day

Volatility

Volatility is the amount and frequency of price changes. It measures how wildly they swing and how often they move higher or lower. These can be prices of just about anything.

Volatility has been most exhaustively studied, measured, and described in the stock market. Here, the focus has been on the volatility of total return (income received plus price changes, relative to beginning price). When viewed from a historical context, it is known as realized volatility. When estimated on a prospective basis, it is known as implied volatility.

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Off the Charts

Interest rates and commodity prices typically have an inverse relationship, because the costs associated with holding inventory decrease in low-interest-rate environments. When interest rates move higher, the prices of commodities tend to move lower. When interest rates move lower, commodities tend to rise in price.

On Tuesday, August 30 at 12:30 p.m. EST, join us on Instagram Live for a discussion with The Balance Editor-in-Chief Kristin Myers and Verywell Mind Editor-in-Chief Amy Morin, on how to approach estate planning conversations with your family. Follow us on Instagram to get updates on The Balance's live events!