When will Fed cut rates? As US economy flexes its muscles, maybe later or not at all

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Ever since the Federal Reserve signaled last fall that it was likely done raising interest rates, Wall Street traders, economists, 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? A blockbuster March jobs report reinforced the notion that the economy is managing quite nicely on its own. Employers added a huge burst of jobs — more than 300,000 — and the unemployment rate dipped to a low 3.8%.