- National Bureau for Economic Research (NBER) is scheduled to analyze the statistics.
- The Federal Reserve raised interest rates by 75 basis points on Wednesday.
The GDP of the United States fell for the second time in a row in the most recent quarter. The US Bureau of Economic Analysis (BEA) figures show that the country’s annualized second-quarter economic growth came in at -0.9%, falling short of experts’ projections of a 0.5% gain. Following an unusually big 1.6 percent drop in GDP in the first quarter of the year, this is the final outcome.
The U.S. economy is formally in a recession, defined as two consecutive quarters of decline in GDP by many experts across the globe. National Bureau for Economic Research (NBER) is scheduled to analyze the economy and statistics in the coming weeks to decide whether or not the United States has entered a recession based on many indicators.
Inflation Rates Hiked
The Federal Reserve raised interest rates by 75 basis points on Wednesday, after a string of disappointing economic data from the United States. US interest rates are now between 2.25 and 2.5 percent, with the Federal Reserve supposedly aiming to raise them to 3.4 percent by the end of the year and 3.8 percent by the end of 2023. At 9.1 percent now, inflation is out of control and the Fed’s core mission calls for it to bring inflation down to its planned 2 percent objective. The crypto sector rebounded after the interest rates announcement. Bitcoin was trading at $23,805 as per CMC.
If inflation is brought down from a four-decade high, it may have an impact on consumer spending, job creation and overall economic development. It is possible that the Fed would ease monetary policy sooner than expected if growth is negative, which would be bad for volatile assets.
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