U.S. Economy Surpasses Expectations with 3% GDP Growth in Q2. Inflation Remains Above Target, But Far from Pandemic Highs.

The U.S. economy grew faster in the second quarter of 2024 than initially estimated, with GDP rising to 3% from the previously reported 2.8%, driven by stronger personal spending. Despite inflation exceeding the Federal Reserve's 2% target, it is well below its pandemic-era peak. Layoffs remain low, and unemployment, though slightly up, is stable. The economy is resilient, with mixed consumer confidence and varying corporate earnings reports. The stock market responded positively, and while the Federal Reserve may still cut interest rates, drastic action appears unlikely.