US Economy Grows 2.8% in Q2

The U.S. economy grew at a robust annualized rate of 2.8% in the second quarter, surpassing economists' expectations of 1.9% and following a 1.4% growth in the first quarter. This growth was driven by strong consumer spending, which rose by 2.3%, alongside significant business investment, particularly in equipment. Despite the positive economic indicators, inflation remains a concern, with the core PCE price index rising at 2.9%, down from 3.7% in the previous quarter. The surge in imports, which increased by 6.9%, negatively impacted GDP calculations, shaving off 0.9 percentage points from the growth rate. The Federal Reserve's aggressive interest rate hikes to combat inflation have created a complex landscape, with some economists forecasting possible rate cuts in the near future. Overall, while the economy shows resilience, challenges such as a declining personal savings rate and a slowing labor market may affect future growth prospects.