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By Kristin Myers, Editor-in-Chief

What's Happening Today

The number of people filing for unemployment for the first time edged up to 229,000 last week, the highest level since the beginning of this year, as more and more people start to claim unemployment benefits. That figure was higher than the 195,000 that economists expected, but still in line with weekly claims levels in late 2019 and early 2020, before the onset of the COVID-19 pandemic.

The uptick in initial jobless claims comes just a day before the Labor Department releases inflation data for the month of May. If inflation stays high and the labor market slows down, there's a chance the U.S. economy could be headed toward a tricky state called stagflation—when unemployment is high, and so is inflation. Stagflation is challenging because the government's tools used to combat inflation—like raising interest rates—typically raise unemployment, and vice versa.

As investors consider the strength of the U.S. economy, Treasury yields have started to rise, popping above 3% this week, as markets continue to be volatile. Typically when yields increase, it means investors are confident in the strength of the economy because they do not feel the need to play it safe with bonds, and are willing to take on more risk with stocks. But lately, investors have been worried about the direction of inflation, and concerned about a potential recession.

Don't forget to tune in today at 2:30 p.m. Eastern for our Instagram Live conversation with Ellyce Fulmore, financial educator and owner of Queerd Co., about building a financial support system. It's a conversation aimed at the LGBTQ+ community and one that you won't want to miss! Follow us on Instagram now to watch, and to get updates on future conversations!

- Kristin

Editors' Picks

Unemployment Claims Edge Upward, But Remain Low (The Balance)

Most Americans Expect Inflation To Get Worse, Post-Schar School Poll Finds (The Washington Post)

Home Buyers Are Finding Creative Ways To Make Cash Offers (The Wall Street Journal)

The Recession Will Hit in the First Half of 2023 and the Dow is Headed Lower: CNBC CFO Survey (CNBC)

Why Inflation Is Hitting American Households Like Never Before (Bloomberg)

Why LGBTQ+ Homeownership Is Below the National Average (The Balance)

Can You Use Home Equity To Pay Off a Mortgage? (The Balance)

How To Tell If You Are Ready To Move Out (The Balance)

Off the Charts

Balances on credit cards and other revolving loans rose $17.8 billion to $1.1 trillion in April, finally returning to levels seen before the pandemic began, according to the Federal Reserve's report this week on monthly consumer credit.

Number of the Day

79% - That's how many people in the U.S. think it's a bad time to buy a house—the most for any month in the 12 years Fannie Mae has been polling.

In the spirit of Pride Month, join our Editor-in-Chief, Kristin Myers, with featured guest Ellyce Fulmore, financial educator and owner of Queerd Co. The event is on Thursday, June 9 at 2:30 p.m. EST. Follow us on Instagram to get updates on The Balance's live events this month!