The US economic system expanded sharply within the second quarter as companies dialed again on imports after stocking up earlier within the 12 months to get forward of President Donald Trump’s tariffs. Underlying particulars within the newest GDP report present that customers and companies have slowed their spending.
Consumer spending, which powers about 70% of the US economic system, picked up within the second quarter to a 1.4% fee, up from the anemic 0.5% within the first quarter. And companies slowed their spending sharply throughout the identical interval, to 1.9% from 10.3%, principally reflecting a recalibration from the front-running earlier within the 12 months.
The Federal Reserve is ready to announce its newest choice on rates of interest at 2 p.m. ET. Markets overwhelmingly count on the central financial institution to carry charges regular for the fifth-straight assembly. However, officers on the central financial institution might dissent by a margin not seen in 30 years. Governors Michelle Bowman and Christopher Waller have brazenly supported the concept of a fee minimize in July.
CNN senior reporter Matt Egan studies on the economic system, and Becky Anderson speaks with KPMG chief economist Diane Swonk concerning the upcoming Federal Reserve rates of interest choice. #CNN #News
