In a significant economic update, the US economy is poised to achieve an extremely rare milestone.
Fresh figures from the Commerce Department released Thursday reveal that the economy expanded at a robust annualized rate of 2.8% in the second quarter, adjusted for inflation and seasonal variations. This solid growth follows a strong first half of the year marked by steady business investment and robust consumer demand.
The latest GDP report indicates that as the economy grew from April to June, inflation has resumed a downward trajectory, approaching the Federal Reserve’s target of 2%.
Anticipation is mounting on Wall Street for an impending rate cut by the Fed in September, with traders increasingly confident in this prospect. Key officials from the Federal Reserve have hinted at growing comfort with the idea of reducing rates in the near future.
Economists are now suggesting that the US economy is on the verge of achieving what’s known as a “soft landing” — a scenario where inflation returns to the Fed’s target without triggering a recession. This achievement has historically occurred only once before, during the 1990s.
The combination of robust growth, controlled inflation, and anticipated monetary policy adjustments underscores a positive outlook for the US economy in the coming months.
