CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – The possibility the Federal Reserve will cut interest rates in 2024 is greatly exaggerated. That from University of Virginia economist Ed Burton on Morning News who says many were forecasting the fed could cut rates six times during the year and bring home mortgage rates down to the 5.5 or 6% neighborhood. However, Burton says now the optimists are saying there’ll be maybe three rate cuts, and there are some out there saying there will be none.

The issue is robust job growth — around 200,000 jobs a month in recent months — which is more than all the economists have been estimating. Fed observers say people continuing to get more jobs stunts confidence inflation will stop, and Burton said everyone sees inflation has indeed continued.