The US economy surprisingly accelerated to a 2.4% annual growth rate from April through June.
. The resulting higher costs for a broad range of loans — from mortgages and credit cards to auto loans and business borrowing — have taken a toll on growth.
The bottom line is that the U.S. economy is still growing above trend, and the Fed will be wondering if they need to do more to slow this economy.Still, they have yet to tip the United States into a widely forecast recession. Optimism has been growing that a recession isn't coming after all, that the Fed can engineer a so-called "soft-landing" — slowing the economy enough to bring inflation down to its 2% annual target without wrecking an expansion of surprising durability.
This week, the International Monetary Fund upgraded its forecast for U.S. economic growth for all of 2023 to 1.8%. Though that would be down from 2.1% growth for 2022, it marked an increase from the 1.6% growth that the IMF had predicted for 2023 back in April. At a news conference Wednesday after the Fed announced its latest quarter-point rate hike, Chair Jerome Powell revealed that the central bank's staff economists no longer foresee a recession in the United States. In April, the minutes of the central bank's March meeting had revealed that the Fed's staff economists envisioned a "mild" recession later this year.
In his remarks, Powell noted that the economy has proved resilient despite the Fed's rapid rate hikes. And he said he still thinks a soft landing remains possible.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. economy grew at a faster 2.4% rate in April-June quarter despite Fed rate hikesThe U.S. economy accelerated unexpectedly to a 2.4% annual growth rate from April through June, showing continued resilience in the face of steadily higher interest rates resulting from the Federal Reserve’s 16-month-long fight against inflation.
Read more »
U.S. economy grew at a faster 2.4% rate in April-June quarter despite Fed rate hikesThursday’s estimate from the Commerce Department indicated that the gross domestic product picked up from the 2% growth rate in the January-March quarter.
Read more »
Hunter Biden to appear in federal court, enter guilty plea out of years-long federal probeHunter Biden is set to make his first court appearance in Delaware where he is expected to plead guilty to misdemeanor tax charges Wednesday morning stemming from the years-long federal investigation into his tax affairs.
Read more »
Federal Reserve Raises Federal Funds Rate by 25bps Amidst Moderate Economic Growth – Economics Bitcoin NewsThe FOMC expressed concern that tighter credit conditions for households and businesses might have a negative impact on economic activity. Economics
Read more »
Japan's business services inflation slows in JuneJapan's business-to-business service inflation slowed in June, data showed on Wednesday, suggesting that companies remained slow in passing on rising labour costs despite a tight job market.
Read more »