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%.
Seven sneaky clauses in estate agent contracts that can cost you dear
Trump to host rally on Biden's home turf in northeast Pennsylvania
Manuel Rocha, a former US ambassador, sentenced to 15 years for serving as secret agent for Cuba
Jill Biden calls Trump a 'bully' who is 'dangerous' to LGBTQ people
Company wins court ruling to continue development of Michigan factory serving EV industry
The US and UK restrict the trade of Russian
Nevada governor signs an order to address the shortage of health care workers in the state
Guilty plea by leader of polygamous sect near the Arizona
Kylie Jenner displays her VERY edgy fashion sense in cleavage
Some fear University of Michigan proposed policy on protests could quell free speech efforts
Six killed in a 'foiled coup' in Congo, the army says
Bangladesh fire: At least 43 dead in Dhaka building blaze