As the economy continued to expand from April through June, inflation resumed a downward trend, the latest GDP report shows.Justin Sullivan/Getty Images/File
The US economy is achieving rare success, showing strong growth in the first half of 2024. GDP expanded at a 2.8% annualized rate in the second quarter, surpassing expectations, driven by robust consumer spending and business investments. Inflation is declining towards the Federal Reserve’s 2% target, potentially leading to a “soft landing” — avoiding recession while controlling inflation, a feat last accomplished in the 1990s.
Despite high mortgage rates and home prices, the economy’s strength is a positive for the Biden administration. The Federal Reserve, led by Jerome Powell, is expected to hold interest rates steady, indicating confidence in current economic conditions. This stability boosts Wall Street’s optimism, with traders anticipating possible rate cuts in the upcoming Fed meeting. Overall, the US economy shows resilience, with easing inflation and strong growth reducing the risk of stagflation.
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