Will the Federal Reserve cut interest rates? With a robust US economy, it might not need to
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%.
Related articles
Analysis: IndyCar cheating scandal risks sullying Roger Penske's perfect image
Santino Ferrucci once made a typo in a social media post in which he incorrectly spelled Josef Newga2024-05-01ACC admits it failed amputee over unpaid entitlements
Ann Nicholl and Karen Sinclair, the family of Alexandra man Alan Keith Nicholl, have fought ACC for2024-05-01Firearms Minister accused of misleading public on gun stats
Some of the guns prohibited by the Labour-New Zealand First coalition government after the Christchu2024-05-01- Auckland Council's long-term plan is open for public feedback until the end of the month. Photo: Loc2024-05-01
Mitch Garver's home run in the 9th inning gives Mariners a 2
SEATTLE (AP) — Mitch Garver hit a two-run game-ending homer in the ninth inning to give the Seattle2024-05-01Chef Jose Andres says Israel targeted his aid workers 'systematically, car by car'
Palestinians standing next to a vehicle in Deir Al-Balah, in the central Gaza Strip, on 2 April 20242024-05-01
atest comment