SCHQ - 2.8% Growth Vs. 28% Recession Risk: The New Economic Landscape In 2024
2024-07-26 18:35:00 ET
Summary
- Gross domestic product last quarter increased by 2.8%, a hair above average long-term growth.
- Soft landings are usually considered rare, but some economists see them more frequently.
- This GDP report will give the Federal Reserve impetus to cut interest rates, though probably not as soon as their end-of-July meeting.
Real GDP grew at 2.8% rate in Q2 2024
Moderate economic growth usually doesn’t justify celebration, but given last year’s pessimism, it’s time for fireworks and sparklers. Gross domestic product last quarter increased by 2.8%, a hair above average long-term growth. (The quarter-to-quarter change was annualized.) But economists surveyed by the Wall Street Journal in late 2022 and most of 2023 estimated the risk of recession to exceed 50%. The Federal Reserve may have pulled off a soft landing in their fight against inflation, and the outlook appears far rosier than it did a year ago....
2.8% Growth Vs. 28% Recession Risk: The New Economic Landscape In 2024