The past couple of weeks have been filled with pivotal economic data in a very uncertain time. On one side, inflation continues to jump. With prices rising so rapidly, it is no surprise that US consumer sentiment dropped to 59.4, the lowest since 2011. The Federal Reserve has also been taking a hawkish tone in fighting inflation. There are even hints that there could be at a 50-basis-point hike in interest rates at the next Fed meeting. Mortgage rates have also risen to almost 5% causing a slowdown in refinancing loans.
However, not all economic data from the past week has been completely negative. The job market has remained tight as companies desperately seek out employees. Just recently, U.S. initial weekly jobless claims fell to 187,000, a number unseen since 1969. The number of people receing benefits after the first week hit 1.350 million which is the lowest number since 1970.
With this data in mind, the Fed is looking to slow down inflation while preserving the labor market and economy at large. Soon, we will receive a better picture of how the conflict in Ukraine is impacting trade. This could lead the Fed to adjust their plans depending on how impactful this conflict is on businesses and consumers.