GDP Slowdown May Give Fed Pause

The U.S. economy grew at a disappointing 2.5% rate last quarter, raising market expectations that the Fed will suspend interest rate hikes

Second-quarter U.S. economic growth fell well short of expectations—and that may prompt the Federal Reserve to pause in its series of interest-rate hikes. U.S. gross domestic product for the quarter underperformed Action Economics' own forecast, with the Bureau of Labor Statistics reporting only a 2.5% rate of growth, vs. our forecast of 3.6%.

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