The U.S. economy grew at a rate of 2.8% in the third quarter of 2024, according to Bureau of Economic Analysis (BEA) statistics released Wednesday.
The growth in the third quarter comes after a better-than-expected 3.0% growth rate in the second quarter of 2024, according to the BEA. Economists forecast that GDP would increase by about 3.0% in the third quarter, according to Forecast.com.
The economic growth in the second quarter had improved compared to the lackluster growth in the first quarter, which measured at an annual rate of 1.4% after being updated from an initial estimate of 1.6%, according to the BEA.
The U.S. Federal Reserve announced on Sept. 18 that it was cutting its federal funds rate target range by 0.50% in an attempt to boost economic growth and GDP. The decision came just under seven weeks before the presidential election, and was the first change to Fed policy since July 2023 and the first cut since March 2020. Prior to September’s rate cut, the Fed had previously kept its target range between 5.25% and 5.50%, which was the highest range since 2001.
The Fed lowering its target rate followed inflation dropping to 2.5% in August. Inflation dipped further in September, leaving some concerned about a hotter-than-expected economy.
The unemployment rate dropped to 4.1% in September, and the U.S. added 254,000 nonfarm payroll jobs. Unemployment was also down in August at 4.2%, which marked the first time that unemployment had ticked down since March.
Inflation under the Biden administration reached a peak of 9% in June 2022, up from 1.4% when President Biden first took office in January 2021.
The economy is one of the top issues for voters in this election. The majority of voters, 52%, said the candidates’ positions on the economy are “extremely important,” according to a Gallup poll published Oct. 9.
The second estimate for the third quarter will be released on Nov. 27, according to the BEA.
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