Sliding on Sanctions

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What's Happening Today

Good morning! It's Kristin with your daily morning digest.

The United States and the European Union (EU) have imposed more extreme sanctions against Russia in response to its invasion of Ukraine. This round of sanctions is designed to isolate Russia's banking system, making it harder for the country to make financial transactions. While the impact of sanctions on the American economy will likely be limited, it is hoped that the moves could coerce Russia to withdraw from Ukraine. Meanwhile, representatives from Russia and Ukraine kicked off talks today in Belarus.

After last week's volatile trading, stocks are falling this morning as investors watch developments in Ukraine and prepare for Federal Reserve Chair Jerome Powell's testimony on monetary policy in front of Congress on Wednesday and Thursday. Investors want to know: are interest rate hikes still on the table, given geopolitical tensions that are shaking up markets? And if so, when will they take effect? Interest rate hikes would help rein in rising inflation, which has made everything more expensive for consumers.

And more economic data is coming our way this week: We'll get insight into the strength of the labor market amid surges in COVID-19 infections on Friday, when the government's February jobs report is released.

- Kristin

Editors' Picks

New Foreclosures Multiply by Eight in January (The Balance)

Russian Ruble Tanks Almost 30% After Latest Sanctions (Barrons)

Corporations Raise Prices as Consumers Spend 'With a Vengeance' (The New York Times)

Citigroup Is Latest Bank To Back Off Overdraft Fees (The Balance)

Off the Charts

Between rapidly rising home prices and spiking mortgage rates, average monthly mortgage payments have never been higher in data going back to 2000, a recent report from real estate company Zillow shows.

Number of the Day

2013 - That's the last time the U.S. saved as little disposable income as it did in January, showing that household finances are running on thinner margins these days.

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