July 27, 2023
Recession? What recession?
Not here. The US economy grew – again in the second quarter. That’s according to today’s gross domestic product report – or GDP.
Now – I know lots of you are going to say these numbers aren’t real. These numbers don’t reflect what I feel in my everyday life. But regardless of how you feel – these are the number the Federal Reserve uses to determine whether to increase interest rates or not. So you might want to pay attention to them.
So what’s GDP? The gross domestic product measures the total value of goods produced and services provided in a country during one year. In the second quarter of 2023 which is April to June, the GDP increased 2.4%. That’s on top of the 2% increase in the first quarter of this year.
The report found even though the Fed keeps pushing up interest rates things like consumer spending, state and local government spending, federal government spending and private inventory investment all increased.
Today’s strong GDP report which indicates the US economy is performing above expectations along with one more major factor has the Federal Reserve changing its mind about the possibility of a recession later this year.
This GDP report along with several other reports will factor in to whether the Federal Reserve will increase interest rates again at its September meeting.
Read the Q2 GDP report here.
