Will the Federal Reserve cut interest rates? With a robust US economy, it might not need to
Time:2024-05-01 04:25:08 Source:sportViews(143)
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%.
You may also like
- Mom shopping in Target stunned by small print on Clorox wipes
- Mascherano confirms Messi Olympics talks
- China prepares to launch Chang'e
- State Councilor stresses need for elderly care meal services, continuous post
- California's population grew in 2023, halting 3 years of decline
- Ice and snow festival opens in Beijing
- Int'l travel expo kicks off in Macao
- Beijing water town to roll out immersive autumn experience
- Workers' paychecks grew faster in the first quarter, a possible concern for the Fed