U.S. economy grows faster than expected while inflation eases, rate cut expectations unaffected

July 25, according to Golden Ten reports, institutional analysis, the United States in the second quarter of faster-than-expected economic growth, but inflation fell back, the Federal Reserve's expectations of a rate cut in September was not affected. U.S. GDP figures for the second quarter released on Thursday grew 2.8%. Economists polled by Reuters had predicted GDP would grow at a rate of 2.0%. Growth was expected to be between 1.1% and 3.4%. The U.S. economy continues to outperform its global peers despite the Federal Reserve's significant interest rate hikes in 2022 and 2023. The U.S. economy has been supported by a resilient labor market despite the unemployment rate rising to a two-and-a-half year high of 4.1%. Core PCE grew 2.9% in the second quarter following a 3.7% spike in the first quarter, which is good news for the Fed next week.