Strong economic data raises questions on timing of expected Fed rate cuts

• Data since December shows economy keeps outperforming expectations, raising question if Fed will still forecast as many rate cuts in 2019 as previously thought • Investors expect Fed to start cutting rates in June and reduce by 1 percentage point total this year • Jobs and other data show mixed signals - unemployment rose but due to more people entering workforce; wage growth slowed but hiring still broad • Regional Fed surveys show mostly steady or growing economic activity across districts • Diverging views on whether Fed will cut rates this year or keep policy tighter for longer if economy stays resilient, though Chair Powell has affirmed cuts likely coming