GDP fell at a 0.6% annualized rate in the second quarter, a final estimate from the Bureau of Economic Analysis showed Thursday morning.
The updated report, which showed the same GDP number for the second quarter as the previous estimate, confirmed the second straight quarter of declining inflation-adjusted GDP — a situation commonly used to define a recession. GDP tumbled at a 1.6% rate in the first quarter.
But gross domestic income, which is an alternative measure of economic growth , increased by 0.1% in the second quarter.While the coronavirus pandemic was the biggest factor in GDP growth over the past couple of years, the bigger problem facing the economy now is inflation and the Federal Reserve’s plan to tamp it down by raising interest rates.
The Fed has been on a historic rate hiking kick. Last week, the central bank conducted a monster rate hike to the tune of three-quarters of a percentage point, or 75 basis points. It was the third such increase in just a matter of four months. As inflation continues to appear more enmeshed in the economy than thought and the Fed keeps hiking rates, the odds of a recession have been on the rise. The stock market has shed a massive amount of value over the past two weeks as investors weigh the increasing likelihood of a broad-based economic slowdown.
At the last meeting, the Federal Open Market Committee members, who vote on interest rate targets, slashed the GDP growth forecast for this year from the June projection of 1.7% down to 0.2% and revised down their GDP predictions for next year and 2024.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Latest GDP reading confirms the US economy shrank for two straight quarters, supporting one definition of a recession | CNN BusinessThe US economy shrank by 0.6% during the second quarter of the year, according to the latest gross domestic product estimate from the Bureau of Economic Analysis released Thursday.
Leer más »
Final GDP reading likely to confirm US economy entered a recession in the springThe Commerce Department will release the third and final estimate of Q2 GDP on Thursday, providing evidence over whether the economy is in a recession.
Leer más »
Technical Recession Confirmed: Economy Shrank 0.6% Last Quarter, Final GDP ShowsMeanwhile, estimates for third-quarter growth have steadily been falling.
Leer más »
EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflationEUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation – by anilpanchal7 EURUSD Inflation RiskAppetite YieldCurve CentralBanks
Leer más »
SE BUREAU/LEGISLATIVE MMJ - KTUU (Juneau, AK) in Anchorage, AK**About Gray Television:** Gray Television is a leading media company that owns and operates high-quality stations in 113 television markets that collectively reach 36 percent of US television households. We constantly strive for excellence. Through upgrading to the latest technology and seekin...
Leer más »
GBP/USD sellers attack 1.0800 with eyes on BOE speakers, US GDPGBP/USD takes offers to refresh the intraday low around 1.0800, snapping a two-day rebound from the record low. In doing so, the cable pair consolidat
Leer más »