US Economy Surges Amid Trade Uncertainty
The US economy saw unexpected growth at an annualized 3% from April through June, rebounding from a previous decline caused by trade tensions. Consumer spending and private investment remain wary amidst ongoing tariff-related uncertainties, although inflationary pressures have eased somewhat. Businesses continue to navigate the complexities of international trade policies.
- Country:
- United States
In an unexpected turn, the US economy grew at a robust 3% annual pace from April through June, marking a recovery from the earlier quarter's downturn, according to the Commerce Department. This upswing came in the wake of President Donald Trump's trade policy disruptions.
Despite the growth, caution prevails among US consumers and businesses due to economic uncertainties stemming from Trump's trade tariffs, meant to revitalize domestic industries but criticized by mainstream economists for potentially inflating costs and impacting efficiency.
The report also highlighted eased inflationary pressure in the second quarter. The Federal Reserve's preferred inflation measure rose at a 2.1% annual rate, indicating some relief in price volatility, even as core inflation saw a modest rise from 2.5%.
(With inputs from agencies.)
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