The Department of Education has announced a reduction in interest rates for federal student loans, describing it as part of a plan to make higher education more affordable.

With growing numbers of borrowers in default, the Trump administration pitched the temporary, 1% reduction in student loan interest rates as a salve for those struggling with repayment. Education Undersecretary Nicholas Kent said Thursday that the change is a way of “making student loan repayment easier than ever” and of improving “the overall health of the federal student loan portfolio.”

U.S. filings for unemployment fall

The number of Americans applying for jobless aid fell modestly last week as layoffs remained in the same historically low range of recent years.

U.S. applications for unemployment benefits in the week ending June 13 dropped by 4,000 to 226,000, the Labor Department reported Thursday. That’s in line with the 225,000 new applications forecast by analysts surveyed by the data firm FactSet. Weekly filings for unemployment benefits are considered representative of U.S. layoffs.

Policymakers show support for rate hikes

The Federal Reserve kept its key rate unchanged Wednesday yet nearly half the central bank’s policymakers said they could support a rate hike later this year, an unexpectedly aggressive outcome that would disappoint President Trump and suggests heightened concerns about persistent inflation.

In an unusually short statement after their two-day meeting, Fed officials dropped language that had suggested their next move would be to cut their key rate. The brief statement reflects the influence of new chair Kevin Warsh, appointed by Trump, who has previously criticized the Fed for commenting too broadly on the economy.

Cuba’s Communist Party approves economic plan

Cuba’s Communist Party has approved an emergency economic package with unprecedented free-market measures. The plan aims to open the struggling island’s economy by expanding private enterprise and attracting foreign investment.

The document, not yet public, will be submitted to Cuba’s National Assembly. Recent protests in Havana highlight growing frustration over power outages. President Miguel Diaz-Canel said the plan is inspired by China and Vietnam’s market-oriented reforms.

Stocks improve greatly on Wall Street

Stocks closed higher on Wall Street, taking back most of their losses from a day earlier that were driven by anticipation that the Federal Reserve will likely raise interest rates this year in an effort to fight inflation.

The S&P 500 rose 1.1% Thursday. The Dow Jones Industrial Average added 0.1%, and the Nasdaq composite jumped 1.9%. Crude oil prices wavered after the United States and Iran signed an agreement to end their war and reopen the Strait of Hormuz to oil tanker traffic. Treasury yields eased in the bond market.

Average 30-year U.S. mortgage rate falls

The average long-term U.S. mortgage rate fell this week, tracking Treasury yields that have retreated since a deal to end the war with Iran was announced.

The benchmark 30-year fixed rate mortgage rate fell to 6.47% from 6.52% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.81%. Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, also came down this week. That average rate fell to 5.81% this week from 5.84% last week. A year ago, it was at 5.96%, Freddie Mac said.