GDP USA 28 July 2022

In the first quarter in the US, the GDP figure was negative, with a value of -1.6%. This second quarter’s GDP was quite expected because, according to economists, when two consecutive quarters show a negative GDP it is considered a recession.

The forecast was for a 0.3% increase for this second quarter, however, the actual figures were not negative, with a contraction of -0.9%.

Federal Reserve Chairman Jerome Powell admits that the economy has indeed slowed, but does not consider a recession under current conditions. He believes that data such as unemployment remains strong. Job creation remains strong with plenty of vacancies still unfilled.

The equity markets have seen this with good eyes. Many investors believe that peak inflation may have been reached, and after this benchmark interest rate hike the Federal Reserve will ease up on its more aggressive policy.

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