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US GDP grew at an annualized rate of 2. 8% during the three months ending in June.
The U. S. economy grew much faster than expected in the three months ending in June, accelerating from the last quarter and defying fears of a conceivable slowdown.
United States GDP grew at an annualized rate of 2. 8% during the three months ending in September, doubling the annualized rate of expansion recorded in the last quarter.
The economic expansion reflects an increase in customer spending, the United States Bureau of Economic Analysis said on Thursday. The increase in spending includes, among other things, the purchase of homes and cars, the BEA added.
These new data constitute a solid report of fitness for the national economy. This robust functionality defies a multi-year era of high interest rates, which weigh on demand and slow economic activity.
However, continued expansion may complicate the path to a widely expected interest rate cut by the Federal Reserve in September.
Until the last quarter, the economy slows down. This trend gave the Federal Reserve confidence that its peak interest rates had indeed slowed production and contributed to a slowdown in value increases.
Price expansion has particularly slowed from a peak of more than 9%, inflation remains more than a percentage point above the Federal Reserve’s 2% target rate. A sharp drop in costs in June compared to last month marked a primary sign of progress in the slowdown. inflation.
However, if the Federal Reserve cuts interest rates as the economy heats up, it risks reigniting immediate price increases.
The odds of an interest rate cut at the Federal Reserve’s September meeting are more than 80%, according to the CME FedWatch tool, a measure of market sentiment.
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