The US economy is on the verge of an extremely rare achievement.
Economic growth in the first half of the year was solid, with the economy expanding a robust 2.8% annualized rate in the second quarter, according to fresh Commerce Department figures released Thursday, which are adjusted for inflation and seasonal swings. Businesses are continuing to invest and a key gauge of consumer demand has been robust this year.
As the economy continued to expand from April through June, inflation resumed a downward trend, the latest GDP report showed, and seems to be on track to slowing further toward the Federal Reserve’s 2% target.
Wall Street traders are convinced that the Fed will roll out the first rate cut in September, and key Fed officials have given subtle signals that they’ve become more comfortable about eventually slashing rates.
America’s economy is about to stick what’s called a “soft landing,” which is when inflation returns to the Fed’s target without a recession — a feat that’s only happened once, during the 1990s, according to some economists.
This story is developing and will be updated.
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