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%.
EU bans 4 more Russian media outlets from broadcasting in the bloc, citing disinformation
Wade Rousse named new president of Louisiana's McNeese State University
I went blind in one eye after having false lashes fitted while wearing contact lenses
Flight attendant indicted in attempt to record teen girl in airplane bathroom
How 'ruthless' Rory McIlroy is as single
Moment runaway Cavalry horses crash through parked e
US probes whether Tesla Autopilot recall did enough to make sure drivers pay attention
Egypt sends delegation to Israel, its latest effort to broker a cease
Blind fish species found in China's underground stream
European soccer leagues insist they have no plans for games in the US. A lawsuit could change that