GDP Data Set to Reinforce Fed View the US Will Avoid Recession
- Second-quarter GDP due Thursday; forecast is for 1.8% growth
- Fed raised rates Wednesday, left options open on next move
Government data will probably show GDP expanded at a 1.8% annualized pace in the April-to-June period.
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The Federal Reserve’s own economists have joined the group of private-sector forecasters who are rethinking their calls for a recession this year, or becoming more confident the US will skirt a downturn altogether.
Their growing faith in the economy is set to be strengthened on Thursday, when government data will probably show gross domestic product expanded at a 1.8% annualized pace in the April-to-June period. That would be down only slightly from 2% in the previous quarter, and roughly in line with the Fed’s assessment of a sustainable long-term rate.