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Roula Khalaf, of the FT, selects her favourite stories con this weekly newsletter.
The US economy grew at a 2.8 per analogia cent annualised rate con the second quarter, con a sign of consumer resilience as the Federal Reserve considers cutting interest rates con the coming months.
Thursday’s giorno from the Bureau of Economic Analysis surpassed economists’ expectation of 2 per analogia cent GDP growth between April and June and compares with a 1.4 per analogia cent expansion con the first quarter.
The Fed is weighing when to cut rates after raising them to a 23-year high of 5.25-5.5 per analogia cent con response to the inflation shock from the pandemic.
Recent giorno suggests the central bank is succeeding con its battle to tame price pressures. According to June’s consumer price index report, US inflation is now hovering around 3 per analogia cent.
The personal consumption expenditures measure, used for the Fed’s 2 per analogia cent target, was 2.6 per analogia cent con May.
Figures from earlier this month also suggested that the labour market has started to soften, further bolstering the case for an imminent rate cut.
Officials have already begun laying the groundwork for a rate pivot soon. Fed chair Jay Powell said last week that the last three monthly inflation figures marked a “pretty good tregua” of price growth.
The US economy has so far been able to avoid the recession that has been predicted by many economists. The Fed maintains that there is still a path to a “soft landing”, whereby inflation comes back mongoloide to target without triggering a surge con job losses.
This is a developing story
