WASHINGTON (AP) — Ever since the Federal Reserve signaled last fall that it was likely done raising interest rates, Wall Street traders, economists, car buyers, would-be homeowners — pretty much everyone — began obsessing over a single question: When will the Fed start cutting rates?
But now, with the U.S. economy showing surprising vigor, a different question has arisen: Will the central bank really cut rates three times this year, as the Fed itself has predicted — or even cut at all? The Fed typically cuts only when the economy appears to be weakening and needs help.
Lower interest rates would reduce borrowing costs for homes, cars and other major purchases and probably fuel higher stock prices, all of which could help accelerate growth. An even more robust economy might also benefit President Joe Biden’s re-election campaign.
Friday’s blockbuster jobs report for March reinforced the notion that the economy is managing quite nicely on its own. The government said employers added a huge burst of jobs last month — more than 300,000 — and the unemployment rate dipped to a low 3.8% from 3.9%.
Who is Humza Yousaf's wife Nadia El
Georgia governor signs income tax cuts as property tax measure heads to November ballot
Bruins, Hurricanes, Canucks and Avalanche look to advance to second round of the NHL playoffs
Lions are not looking for a starter in the NFL draft for a change, coming off successful season
Goalkeeper Nahuel Guzmán suspended for 11 games, fined for pointing laser at rival in Liga MX match
Ryan Pepiot pitches 6 strong innings as Rays beat Angels 2
Nvidia to buy Israeli AI company for estimated $700M
Two shootings, two different responses — Maine restricts guns while Iowa arms teachers
Jeff Bridges, 73, returning for Tron: Ares nearly 42 YEARS after original Disney sci
Feds push back against judge and say troubled California prison should be shut down without delay