{"id":11671,"date":"2022-05-09T15:12:10","date_gmt":"2022-05-09T15:12:10","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=11671"},"modified":"2022-05-09T15:17:26","modified_gmt":"2022-05-09T15:17:26","slug":"job-openings-and-quits-hit-record-fed-raises-rates-mortgage-rates-climb","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/job-openings-and-quits-hit-record-fed-raises-rates-mortgage-rates-climb\/","title":{"rendered":"Job Openings and Quits Hit Record, Fed Raises Rates, Mortgage Rates Climb"},"content":{"rendered":"\n<p>With all the recent news and headlines surrounding the current state of the market and increased volatility, we are taking a deeper dive into key factors that we believe investors should keep an eye on, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Job openings reach new records<\/li><li>Is a recession ahead due to the European ban on Russian oil?<\/li><li>Mortgage rates climb to new highs<\/li><li>The Federal Reserve raises rates<\/li><\/ul>\n\n\n\n<p><strong>Job Openings and Job Quits Both Reach New Records \u2013 <\/strong>It is possible that the U.S. economy is currently producing one of the best job-seeking markets in history. The Labor Department reports that there were 11.5 million job openings in March, and private-sector estimates show that demand in the labor markets remained very strong in April. The highest rate of job openings can be found in the services sector, notably in hospitality and food services. Finding a job in healthcare is also pretty easy for qualified candidates. All told, the number of jobs available in the economy is at a record high, with nearly two open jobs for every one unemployed person. Perhaps, for this reason, U.S. workers are also quitting their jobs at a record pace, knowing that plenty of jobs are available and some of them may offer better pay. In March, 4.5 million Americans quit their jobs, which is also a record for the U.S. economy.<sup>1<\/sup><\/p>\n\n\n\n<p><a href=\"https:\/\/go.steadyinvestor.com\/arrow-4-steps-to-managing-retirement?source=zim&amp;medium=blog&amp;term=steadyinvestor_zim_2022_05_09&amp;content=4_steps_to_managing_retirement_assets_guide\"><strong>4 Steps to Prepare for Retirement Amid Rising Inflation &amp; Recession Concerns<br><\/strong><\/a><br>During times like these when inflation and recession worries are high, do you know that with the right guidance, retirement planning doesn\u2019t have to be a difficult process?<\/p>\n\n\n\n<p>When the headlines focus on \u2018worrisome stories,\u2019 it\u2019s easy to get caught up in short-term decision marking. Instead of falling into this trap, here are some important factors that investors should consider before retirement:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Determining your expenses<\/li><li>Determining your income<\/li><li>Matching your income source with your goals and time frame<\/li><\/ul>\n\n\n\n<p>Considering these factors can be a daunting task, but there are four simple steps that can help you plan for retirement! If you have $500,000 or more to invest, get the scoop on these simple steps with our guide. Click on the link below to get your copy today:<br>&nbsp;<br><strong><u><a href=\"https:\/\/go.steadyinvestor.com\/arrow-4-steps-to-managing-retirement?source=zim&amp;medium=blog&amp;term=steadyinvestor_zim_2022_05_09&amp;content=4_steps_to_managing_retirement_assets_guide\">Download \u201c4 Steps to Managing Your Retirement Assets!\u201d<sup>2<\/sup><\/a><\/u><\/strong><\/p>\n\n\n\n<p><strong>Will a European Ban on Russian Oil Cause a Recession? <\/strong>European countries have been actively discussing a phased-in ban on Russian oil, with the likelihood of an embargo rising as the war goes on. That has Europe scrambling to secure supply from elsewhere in the world, which could benefit the U.S., Africa, the Middle East, and Asia. This process of diversifying supply is already underway \u2013 European imports of non-Russian oil reached their highest level since early 2020, and Germany said that only 12% of its oil imports come from Russia. That number was 35% earlier this year. The question weighing on Wall Street is whether Europe\u2019s ban could lead to a self-inflicted recession. Eurostat reported slower-than-expected growth for the eurozone in Q1, with the GDP print showing 0.2% growth quarter-over-quarter. Given its status as a net energy importer, Europe has high exposure to energy market disruption. But in our view, a recession is not necessarily assured \u2013 the ban is likely to happen in increments, and oil markets are global. Europe may be able to effectively find substitutes over time.<sup>3<\/sup><\/p>\n\n\n\n<p><strong>Mortgage Rates Climb to the Highest Level in Over a Decade \u2013 <\/strong>In the wake of the pandemic when the Federal Reserve took extraordinary measures to support the economy, mortgage rates fell to historically low levels. In July 2020, the average rate on a 30-year fixed mortgage dipped below 3%, for the first time in history. The mortgage market is changing fast. With the Federal Reserve\u2019s pivot to hawkish policy and the announcement of plans to trim the Fed\u2019s $9 trillion balance sheet next month, upward pressure is being applied to interest rates and it has pushed mortgage rates to their steepest increase in decades. Prospective homebuyers who received mortgage quotes at the beginning of the year often saw rates below 3%. Today, quoted rates are closer to 6%. Homebuyers are trying to mitigate the blow of higher rates by paying fees to cut interest rates or making higher down payments, to finance less.<sup>4<\/sup><\/p>\n\n\n\n<p><strong>The Federal Reserve Raises Rates by a Half Percentage Point \u2013 <\/strong>In a largely expected move, the Federal Reserve raised the benchmark fed funds rate by a half-percentage point this week. The Fed also announced plans to start shrinking its $9 trillion balance sheet starting next month, which could remove some demand from Treasury markets and result in further upward pressure on rates. The stock market exhibited pronounced volatility in the days following the announcement, as investors priced-in the longer-term effects on the economy. One positive takeaway from the Fed announcement was Chairman Powell\u2019s message that three-quarter percentage-point increases were largely off the table. The market had previously been pricing in a 95% possibility of a bigger rate increase in June.<sup>5<\/sup><\/p>\n\n\n\n<p><strong>Managing Your Retirement Assets During a Potential Recession \u2013 <\/strong>Are fearful headlines in the media (<em>regarding inflation and a potential recession<\/em>) causing you to worry about your next investment decision for retirement?<\/p>\n\n\n\n<p>If so, I recommend that investors who are nearing retirement go through four steps that are outlined in our exclusive guide, \u201c<em><strong><a href=\"https:\/\/go.steadyinvestor.com\/arrow-4-steps-to-managing-retirement?source=zim&amp;medium=blog&amp;term=steadyinvestor_zim_2022_05_09&amp;content=4_steps_to_managing_retirement_assets_guide\">4 Steps to Managing Your Retirement Assets<sup>6<\/sup><\/a><\/strong><\/em>.\u201d This guide will help give you some ideas for how to transition into retirement with confidence. You will also read how to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Determining your expenses<\/li><li>Determining your income<\/li><li>Matching your income source with your goals and time frame<\/li><\/ul>\n\n\n\n<p>Considering these factors can be a daunting task, but there are four simple steps that can help you plan for retirement! If you have $500,000 or more to invest, get the scoop on these simple steps with our guide. Click on the link below to get your copy today:<\/p>\n","protected":false},"excerpt":{"rendered":"<p>European ban on Russian oil raises specter of recession, U.S. sees historic job-seeker market, mortgage rates at decade-high level  <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71,73],"tags":[],"class_list":["post-11671","post","type-post","status-publish","format-standard","hentry","category-private-client-group","category-steady-investors-week"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/11671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=11671"}],"version-history":[{"count":6,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/11671\/revisions"}],"predecessor-version":[{"id":11677,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/11671\/revisions\/11677"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=11671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=11671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=11671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}