This was announced by the US Department of Commerce based on preliminary data. Growth of more than four percent is the best rate that an industrialized country can currently boast of. In the first quarter there was an increase of only 2.2 percent. Private consumption, which accounts for more than two-thirds of GDP, is now providing impetus. Consumers spent 4.0 percent more than last time.
US President Donald Trump wants to boost growth to at least three percent with his radical tax reform. At least in the short term, he appears to have succeeded. Thus the current economic situation proves to be a blessing for him.
A strong economic recovery in the second quarter is not unusual in the world’s largest economy. In the past few years, growth at the beginning of the year has been relatively weak on several occasions, and the economy has rebounded significantly only as the year progressed.
In the United States, growth figures for the year are estimated. It indicates how much the economy will grow if the growth rate continues for a year. This annual transfer is dispensed with in Europe. Thus, growth figures from the US are visually higher and cannot be directly compared to European figures.
Is the economical engine already running hot?
But there is also growing concern that the US economy could overheat. In order to reduce these risks, the Fed is also determined to tighten interest rates even more. Economists assume that the currency watchdogs around Federal Reserve Chairman Jerome Powell will make two additional adjustments this year. Principal interest rates are currently between 1.75 and 2.0 percent. Trump recently broke with the tradition of US presidents and publicly criticized the politically independent Federal Reserve for raising interest rates.
Trump’s reprimand comes at a bad time for the Federal Reserve. Because the central bank is now focusing on the difficult question of where the summit will be, said Commerzbank economist Bernd Weidensteiner. “The Fed needs to answer the question of when to stop raising interest rates.” Next week he will make a decision on his monetary policy again.
dk / sti (rtr, dpa, dpae, afpe)
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