Wednesday's Scoop: Steady 🌤️

Hey friend - it’s officially May. We’re on the doorstep of summer.

Here’s what you need to know today to inform your work, spending, and investments…

1. The number of available jobs keeps shrinking.

2. Policymakers don’t expect to make borrowing more expensive.

3. Crypto’s most prominent CEO is going to jail.

Unemployment Rate: 3.8%
^{Still near the lowest rate in 50+ years}

Job openings have fallen significantly this past year. The Labor Department's Job Openings and Labor Turnover Summary indicated that available roles fell to 8.5 million in March, the lowest level in three years but still above the pre-pandemic average of 7 million. Available positions peaked above 12 million in March 2022, with two open positions for every unemployed worker. Now, there are only 1.3. Construction, finance, and healthcare cut back their hiring plans. State and local government education roles surged as the teacher shortage continued. Fewer people are quitting their jobs as the hiring market gets more competitive.

Inflation Rate: +3.5% (YoY), +0.4% (MoM)
^{Policymakers aim for 2% YoY inflation. (CPI)}

Persistent inflation has delayed policymakers’ plans to reduce nationwide borrowing costs, but they’re no longer considering raising rates. The Federal Reserve decided to keep baseline interest rates the same after this week's policy meeting. They believe the economy is doing pretty well and that inflation will continue to fall this year, even though it’s taking longer than expected. High rates will make it more expensive for businesses to borrow and for you to charge your credit card, lease a new car, borrow for school, or take out a mortgage. Less spending and lower demand for goods and services can ease the pressure on businesses to raise prices.

The Market: ⬇️ -0.3%
S&P 500: 5,018.39
1Mo: -4% | 1Yr: +20% | 5Yr: +70%

The market wavered on Wednesday as policymakers reassured investors that things aren't getting much worse—they're just not getting better as quickly as they hoped. The Fed plans to keep borrowing costs higher for longer. Investors had worried that stubborn inflation could not only prevent interest rate cuts but also encourage rate hikes. Chairman Powell firmly dismissed that idea.

The founder and CEO of the world’s biggest cryptocurrency exchange is going to jail. Binance’s Changpeng Zhao, better known as CZ, was just sentenced to four months in prison for not doing enough to prevent money laundering for sex trafficking and terrorism through his crypto exchange. This comes after a settlement where Binance, the world's largest crypto exchange by far, agreed to pay $4.3 billion to the US Department of Justice. Despite stepping down as CEO, CZ's personal wealth remains largely intact. His case, along with the 25-year sentence for FTX founder Sam Bankman-Fried, underscores a major cleanup in the industry and tightening regulatory compliance.