Looks like Bidenomics is working? LOL! Just kidding...the President, any President, has nothing to do with the macro-economy. But with inflation retreating and growth accelerating, times might not be as bad as the doomsayers on the Right make it out to be.
The U.S. economy grew faster than expected in the second quarter as labor market resilience supported consumer spending, while businesses boosted investment in equipment, potentially keeping a much-feared recession at bay.
While the Commerce Department's advance second-quarter gross domestic product (GDP) report on Thursday sketched a picture of sustained strength in domestic demand, inflation subsided considerably last quarter.
That led some economists to believe that the Federal Reserve would not need to raise interest rates beyond this year, but rather keep borrowing costs higher for a while. The U.S. central bank on Wednesday raised its policy by 25 basis points to a 5.25%-5.50% range.
"The economy is more than resilient, solid second-quarter growth shows it has triumphed over the naysayers saying recession was inevitable following the inflation shock and the Fed's aggressive rates stance to stem it," said Christopher Rupkey, chief economist at FWDBONDS in New York.
US economy defies recession fears with strong second-quarter performance
A resilient labor market supported consumer spending, while businesses invested in equipment and built more factories.
www.reuters.com
- Summary
- Second-quarter GDP increases at 2.4% rate
- Consumer spending slows, but pace still strong
- Business investment picks up on equipment rebound
- Weekly jobless claims fall 7,000 to 221,000
The U.S. economy grew faster than expected in the second quarter as labor market resilience supported consumer spending, while businesses boosted investment in equipment, potentially keeping a much-feared recession at bay.
While the Commerce Department's advance second-quarter gross domestic product (GDP) report on Thursday sketched a picture of sustained strength in domestic demand, inflation subsided considerably last quarter.
That led some economists to believe that the Federal Reserve would not need to raise interest rates beyond this year, but rather keep borrowing costs higher for a while. The U.S. central bank on Wednesday raised its policy by 25 basis points to a 5.25%-5.50% range.
"The economy is more than resilient, solid second-quarter growth shows it has triumphed over the naysayers saying recession was inevitable following the inflation shock and the Fed's aggressive rates stance to stem it," said Christopher Rupkey, chief economist at FWDBONDS in New York.