Economic Growth and Inflation

SOURCE www.washingtonexaminer.com
The GDP growth in the second quarter was revised up to 3%, showing underlying strength in the economy despite signs of a weakening labor market. Vice President Kamala Harris will likely highlight this good news on the campaign trail. Inflation remains a concern for voters, with prices up nearly 20% since Biden took office. The Fed is expected to start cutting interest rates in response to economic conditions.

Key Points

  • Revised GDP growth rate of 3%
  • Inflation running at 2.9%
  • Economy added 114,000 jobs in July, fewer than expected

Pros

  • Revised GDP growth rate of 3% in the second quarter shows underlying strength in the economy
  • Vice President Kamala Harris can use this positive economic news to reassure voters
  • Inflation is running at a more manageable 2.9%

Cons

  • Signs of a weakening labor market
  • Compounded inflation causing voters pain