The US economy is growing “only” 3.5% year-on-year

The weaker the US economy, the more arguments the Fed will have to cut interest rates early. But the economy is still strong. very strong? The Fed made clear this week that interest rate cuts will not be considered until later, and yesterday's PMI also reinforced the view that the US economy is strong. But now the Federal Reserve Bank of Atlanta released its GDP index a few minutes ago mentionedWhich indicates a little weakness in the US economy?

We are now seeing the Atlanta Fed's weekly GDP index update, where 13 economic indicators show, so to speak, how strong the US economy is currently growing. Here we see that annual GDP growth in the current second quarter is expected to reach “only” 3.5%, after 3.6% in the previous week. At the beginning of May there was still growth of more than 4%. So we see a slowdown in economic growth, but still at a very high level.

The graph shows the situation: the analysis community estimates (blue area) less than 3% of GDP growth. However, data from the GDP index (green line) compiled by the Federal Reserve Bank of Atlanta is higher. So, is there little cheer for hopes of lower interest rates because expected annual GDP growth in the US is “only” 3.5%? And by the way: GDP also shows that expectations for real growth in private GDP in the second quarter fall from 5.6% to 5.1%.

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