Fed to keep interest rates low

WASHINGTON—The Federal Reserve usually raises interest rates when inflation climbs over 2 percent. But Fed Chairman Jerome Powell announced Thursday that the central bank of the United States is changing that and will keep rates near zero even if inflation goes up, making household and business borrowing easier. Powell said the reduced interest has helped low- and moderate-income families during the coronavirus pandemic: “The robust job market was delivering life-changing gains for many individuals, families, and communities.”

Are jobs returning? The U.S. Department of Labor’s report on Thursday showed that Americans submitted 98,000 fewer new jobless claims last week than the week before. But the number of weekly applications hasn’t dipped below 1 million since lockdowns began in mid-March, and more than 14 million Americans are currently receiving unemployment benefits.

Dig deeper: Read Rachel Lynn Aldrich’s report in Compassion about the surprising effect of the coronavirus on the personal finances of some Americans.