Financial Policy Archives

WASHINGTON (AP) — The American economy expanded at a healthy 3% annual pace from April through June, boosted by strong consumer spending and business investment, the government said, leaving its previous estimate unchanged. The nation’s gross domestic product — the nation’s total output of goods and services — picked up sharply in the second quarter from the tepid 1.6% annual rate in the first three months of the year. Consumer spending, the primary driver of the economy, grew last quarter at a 2.8% pace, down slightly from the 2.9% rate the government had previously estimated. The final GDP estimate for the April-June quarter included figures showing that inflation continues to ease, to just above the Federal Reserve’s 2% target.… Continue Reading

WASHINGTON (AP) — The Federal Reserve cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates helped tame inflation but that also made borrowing painfully expensive for consumers. The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market. Coming just weeks before the presidential election, the Fed’s move also has the potential to scramble the economic landscape just as Americans prepare to vote. The policymakers also signaled that they expect to cut their key rate by an additional half-point in their final two meetings this year, in November and December. They envision four more rate cuts in 2025 and two in 2026.… Continue Reading

US economy grew at a solid 3% rate last quarter, government says in final estimate

Federal Reserve signals end to inflation fight with a sizable half-point rate cut