GDP growth unexpectedly rises to 2.4% in Q2.

Economic Growth Surpasses Expectations

Economic growth in the⁤ United ⁤States unexpectedly ‌surged to a 2.4%‌ annual rate in the second quarter of this year, surpassing economists’ predictions of a 1.7% rate. This positive news comes after the Federal Reserve’s efforts to combat inflation through interest‍ rate hikes.

Positive Signs for ⁤the Economy

The​ Bureau of Economic Analysis released the first of⁤ three estimates ⁢of GDP growth, adjusted for inflation, ‍in the second⁣ quarter. This report indicates that the country is not currently facing an economic downturn or recession, as ⁤two consecutive quarters of negative GDP growth are typically indicative of such a situation.

Inflation has​ been decreasing in response to the Federal ⁣Reserve’s tightening measures. The consumer price index showed a 3% annual inflation rate in June, nearing the​ central bank’s 2% goal and significantly lower than the 9% rate seen last summer.

Despite the rate hikes, the labor market has remained resilient. In June, the ⁣national economy added ⁣209,000 jobs, and the unemployment rate remains near its pre-pandemic level at 3.7%.

Hope for a “Soft Landing”

The positive GDP growth and strong labor market have raised hopes that the Federal Reserve will be able to achieve a “soft landing,” meaning a decrease in inflation without triggering a recession.⁣ Fed Chairman Jerome Powell acknowledged this during a recent press conference, stating that while there is a projected slowdown in growth, a recession is no⁢ longer expected.

However, it is anticipated that GDP growth will slow in the coming year as the impact of the rate⁢ hikes continues to affect the economy. The Congressional Budget Office‌ predicts a 0.4% annual growth rate in⁢ the second half of this year and a 0.9% ⁣increase ​for⁢ 2023 as a whole. The CBO also ⁢forecasts a 1.5% increase in GDP in 2024 as the Federal Reserve eases monetary policy, although this is still below the trend.

Senate Votes to Restrict​ China’s Purchase ​of US Farmland

Overall, while the economy ⁢is currently showing positive signs, there are challenges ahead. The Federal Reserve’s actions and the evolving economic landscape will continue to shape the future of the country’s growth.

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