Yahoo Finance Live anchors discuss reports that the European Central Bank will raise its interest rates in July.
BRIAN CHEUNG: Jobless claims clocking in at 229,000 for the week ended June 4th. This is an interesting picture on the jobs market, especially when you consider that that's the highest that we've seen in terms of a single week since about mid-January, although it is settling around pre-pandemic levels. We were seeing around 200,000 or so before the pandemic.
But all this also coming alongside some news overseas, where the European Central Bank held interest rates steady at the deposit rate of negative 1/2 of a percent. But Christine Lagarde saying that the intention is to increase interest rates beginning in July. That'd be the first time that they do that since 2009.
AKIKO FUJITA: Yeah, a little behind where the Fed has been in terms of raising those rate hikes. But certainly Europe not immune to inflation. I mean, you could argue that they have been hit even harder, especially on the back of Russia and Ukraine.
BRIAN CHEUNG: Yeah, certainly, and I think that for the ECB, we have to keep in mind that, yes, they are certainly behind the ball from the Federal Reserve. But the situation in the Eurozone has been very different than the United States when you consider their growth was a lot more stagnant than the United States prior to the pandemic.
And then the pandemic, in tandem with the Russia-Ukraine situation that you just brought up, has really made it such a volatile, difficult situation to navigate. Of course, they want to try to give financial markets plenty of clearance, so much so that even though they didn't raise rates today, they said, look, this is going to happen in July. That is the game plan.
AKIKO FUJITA: Well, and then you could argue, especially on the energy front, things could get even more uncertain, because they're still trying to shake things down in terms of how much reliance comes in on Russia. They've already talked about banning oil, but gas is still a big part there. And so that still to be determined.