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1. Fed, ECB Raise Interest Rates
The Federal Reserve raised interest rates by another quarter percentage point at its meeting Wednesday, bringing the benchmark federal-funds rate to a range between 5% and 5.25%, the Wall Street Journal reports. Officials signaled this may be the last increase for a while.
This was the Fed’s 10th consecutive rate increase aimed at bringing inflation under control, and it’s the highest the rate has been in 16 years, according to the newspaper. Chairman Jerome Powell said in a news conference the Fed is prepared to raise rates again if necessary, but would need to see signs of stronger-than-expected growth, hiring and inflation to do so.
The European Central Bank also raised its rate by a quarter percentage point, a smaller increase than previous moves, the Wall Street Journal reports. At 3.25%, the rate is now at its highest in nearly 15 years. The ECB gave no clear guidance about future decisions on rate increases.
2. New York Program's First Hotel Conversion
The Hilton New York JFK Airport will be the first hotel to convert to affordable housing under a state program to help make such conversions easier and less expensive, the New York Times reports. Developers have criticized the 2021 program, arguing it doesn’t go far enough to help with regulations and $200 million in funds isn’t enough.
The hotel will become a housing development with more than 300 units. Roughly $48 million of the $150 million conversion will come from the state program. The developers expect the apartments will be available within two years following renovations to guestrooms, heating systems and other parts of the building. Roughly 60% of the units will be used for the homeless while the remaining units will be available to lower-income households.
3. London Hotel Bookings Rise for Coronation
Demand for hotels in London has increased ahead of the coronation of King Charles III on May 6, reports HNN's Terence Baker, citing data from STR, CoStar's hospitality analytics firm.
“As we approach the historic coronation of His Majesty The King, hotel bookings across London are surging. ... While the Friday and Saturday of coronation weekend have already hit a peak for the month of May, we expect these figures to increase in the coming days as excitement grows and the eyes of the world are once again on London,” said Thomas Emanuel, STR’s senior director.
4. American Airlines' Hotel Is for Employees Only
As American Airlines was developing its $250 million, 600-room, employees-only Skyview 6 hotel near Dallas/Fort Worth International Airport, it listened heavily to what its pilots and flight attendants wanted in a hotel, the Wall Street Journal reports. The airline built the hotel to house employees who go through training at its nearby corporate campus.
Based on advice from current and retired employees, the hotel’s guestrooms include a cork strip above the desk to display training materials, magnetic blackout curtains, safes large enough to store laptops and tablets, a light under the counter in the bathroom that turns on when someone walks in and a digital clock embedded in the bathroom mirror.
American Airlines owns the hotel, which is operated by MCR.
5. US Weekly Jobless Claims Rise
U.S. Department of Labor data for the week ending April 29 shows initial jobless claims rose by 13,000 to a seasonally adjusted 242,000, Reuters reports. Initial claims have stayed in the higher end of the range of 194,000 to 247,000 this year.
The number of people who receive aid following their initial claims week dropped 38,000 to 1.8 million the week ending April 22, the news agency reports.
"The so-called continuing claims remain low by historical standards as some of the laid-off workers are quickly finding employment," according to the article.