US GDP is not growing as fast as expected
According to the Commerce Department’s second estimate, U.S. gross domestic product rose 2.1% annually in the second quarter.
So far this year, GDP growth has been above expectations and above its long-term trend.
Image: Michael Reynolds/EPA/Keystone
The US economy did not grow as strongly as initially thought in the spring. Gross domestic product (GDP) rose 2.1% annually in the second quarter, the US Commerce Department said in its second estimate on Wednesday. In the initial figures, 2.4% was mentioned. At the start of the year, GDP growth was 2%, slightly below the growth pace of the second quarter.
The US Federal Reserve wants to curb strong inflation and has raised interest rates from early 2022 – the current range is 5.25 to 5.5%. Fed Chairman Jerome Powell recently left the door open for further hikes, but without committing himself. US monetary authorities want to get a grip on inflation, thereby slowing economic growth, but without stalling the economy. In economist jargon, this scenario is called a soft landing.
Powell pointed out recently In a well-received speech at the Fed Symposium in Jackson Hole, monetary officials were watching for signs that the economy may not be as sluggish as expected. So far this year, GDP growth has been above expectations and above its long-term trend. Any evidence of continued strong growth could undermine progress in the fight against inflation and justify further tightening of monetary policy.
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