U.S. Economy grew 4.1% rate in Q2

The U.S economy grew at the strongest pace in nearly four-years during Q2, supported by a rebound in consumer spending, exports and firm business investment.

Q2 GDP rose at a seasonally and inflation-adjusted annual rate of +4.1% – a pickup from Q1 growth rate of +2.2%. Compared to the second quarter a year ago, output grew 2.8%.

Note: Market expectations were looking for a +4.4% growth rate.

Today’s report again suggests that the Fed will continue to “gradually” raise short-term interest rates to prevent economic overheating.



The Fed is widely expected to leave its benchmark rate unchanged at its policy meeting next week (Aug. 1) and increase it by +25 bps in September to +2.25%.

Immediate reaction sees some pressure on the U.S dollar.

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell