Fed Likely to Keep Rates Unchanged But Cuts Possible Despite Strong Growth
• The Fed is expected to leave interest rates unchanged but may cut them later this year despite strong economic growth
• The U.S. economy grew 3.1% last year, faster than expected, with strong consumer spending
• Unemployment is at a historically low 3.7% though hiring has slowed recently
• The Fed has raised rates to the highest level in over 20 years but it hasn't significantly slowed growth
• The Fed typically cuts rates when growth is weak and raises them to prevent overheating, so rate cuts now could require explanation