US Economic Growth Beats Expectations In Second Quarter

The U.S. economy grew at a rate of 2.8%in the second quarter of 2024, according to gross domestic product (GDP) statistics released by the Bureau of Economic Analysis (BEA) on Thursday.

Higher growth in the second quarter follows poor growth in the first quarter of 2024, which measured 1.4% after being revised down from an initial estimate of 1.6%, according to the BEA. Economists expected that GDP would increase by around 2.1% in the second quarter of 2024, in line with typical U.S economic growth rates.

The Federal Reserve has attempted to slow down the economy by keeping the federal funds target range between 5.25% and 5.50%, the highest level since 2001. The June Federal Open Market Committee (FMOC) meeting marked the seventh in a row where the Fed chose not to adjust the rate, leaving borrowing costs elevated for consumers and businesses.

The Fed has set the federal funds rate to its current level to combat elevated inflation, which measured