The economy grew at a 2.1% annual rate in the second quarter of this year, near the 2.2% rate the quarter before, the Bureau of Economic Analysis reported Thursday morning.
The latest update, the third and final, shows that GDP growth has remained resilient even as the Federal Reserve continues to hike interest rates in response to inflation.
The Fed’s target range is now 5.25% to 5.50%, still the highest level in more than two decades. Higher interest rates are meant to have the effect of slowing borrowing and investment, dampening overall commerce. Many economists fear that the rate-hike cycle will end in a recession. While inflation has largely been in decline since June 2022, the past couple months have shown annual price growth trending up again — making the Fed more likely to hike again and a situation that is bad news for the overall economy.CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
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