US economy unexpectedly accelerated to a 2.4% growth rate in April-June quarter despite Fed hikes
Associated PressWASHINGTON — The U.S. economy surprisingly accelerated to a 2.4% annual growth rate from April through June, showing continued resilience in the face of steadily higher interest rates resulting from the Federal Reserve’s 16-month-long fight to bring down inflation. Consumer spending, the heart of the nation’s economy, was also solid last quarter, though it slowed to a 1.6% annual rate from a robust 4.2% pace in the first quarter of the year. “This is a strong report, confirming that this economy continues to largely shrug off the Fed’s aggressive rate increases and tightening credit conditions,’’ said Olu Sonola, head of U.S. economics at Fitch Ratings. But Thursday’s GDP report contained some encouraging news for the Fed’s inflation fighters: One measure of prices — the personal consumption expenditures index — rose at a 2.6% annual rate last quarter, down from a 4.1% pace in the January-March quarter, to the lowest level since the end of 2020.