U.S. Economy Grew 4.1% In Q2
Dean Popplewell | Jul 27, 2018 09:40
The U.S. economy grew at the strongest pace in nearly four years during Q2, supported by a rebound in consumer spending, exports and firm business investment.
Q2 GDP rose at a seasonally and inflation-adjusted annual rate of +4.1% – a pickup from Q1 growth rate of 2.2%. Compared with the second quarter a year ago, output grew 2.8%.
Note: Market expectations were looking for a 4.4% growth rate.
Today’s report again suggests that the Fed will continue to “gradually” raise short-term interest rates to prevent economic overheating.
The Fed is widely expected to leave its benchmark rate unchanged at its policy meeting next week (Aug. 1) and increase it by 25 bps in September to 2.25%.
Immediate reaction sees some pressure on the U.S. dollar.
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