US GDP: “Should give investors confidence that the Fed can orchestrate a soft landing”
eToro on the US GDP data. “While we are not necessarily out of the woods, the US economy is more resilient than many believe.
Today’s report should give investors confidence that the Federal Reserve can still orchestrate a soft landing,” says Bret Kenwell, investment analyst at eToro.
After a lackluster first quarter, revised GDP growth in the second quarter remained strong, helping to reassure investors that the economy is not faltering.
While the labor market has seen some weakness in recent months, other economic data shows that consumers are still spending, as evidenced by personal consumption, which leads today’s revised reading.
Despite the upward revision to the second quarter, the Federal Reserve is unlikely to alter its plans to cut rates at next month's meeting, after Chairman Powell made clear that the time has come to shift policy toward lower rates.
That's because the Fed is looking at a set of data, not a single indicator, and won't alter its plans because of any particular report.
While we're not necessarily out of the woods, the U.S. economy is more resilient than many believe. Today's report should give investors confidence that the Fed can still orchestrate a soft landing.
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