US Economy Grows 2.8% in Second Quarter

The U.S. economy grew at an impressive 2.8% annual rate in the second quarter of 2024, surpassing economists' expectations of 1.9%. This growth was driven primarily by robust consumer spending, which increased at a 2.3% annual rate, and strong business investments. Inflation has eased to 2.6% but remains above the Federal Reserve's 2% target, prompting expectations of a potential interest rate cut by the Fed in September. Despite high interest rates and international economic concerns, particularly from China, the U.S. economy remains resilient with a strong labor market and declining inflation. The latest GDP data suggests the U.S. could achieve a 'soft landing,' avoiding a recession while controlling inflation.