US GDP is not growing as quickly as expected
According to a second estimate from the Commerce Department, US GDP rose by an annualized rate of 2.1% in the second quarter.
So far this year, GDP growth has been above expectations and also above its long-term trend.
Photo: Michael Reynolds/EPA/Keystone
The US economy did not grow as strongly in the spring as initially expected. The US Commerce Department announced in a second estimate on Wednesday that gross domestic product rose 2.1% year over year in the second quarter. Preliminary figures said 2.4%. At the beginning of the year, GDP growth was 2%, slightly below the growth momentum in the second quarter.
The US Federal Reserve wants to curb strong inflation and has raised interest rates sharply since the start of 2022 – to the current range of 5.25 to 5.5%. Recently, Fed Chairman Jerome Powell left the door open for a further increase, but without committing himself. The US monetary authorities want to control rising prices while discouraging economic growth, but without strangling the economy. In economic terms, this scenario is called a soft landing.
Powell recently confirmed In a highly acclaimed speech at the Central Bank Symposium in Jackson HoleMonetary oversight bodies have been monitoring indicators that the economy may not slow as expected. So far this year, GDP growth has been above expectations and also above its long-term trend. More evidence of continued strong growth could jeopardize progress in combating inflation and justify further tightening of monetary policy.
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