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Gross domestic product grew at an annual rate of 2.1 percent in the three-month period from April to June, down from 3.1 percent in the first quarter, beating analysts' expectations of 1.8 percent.
The report provides some solid optimism for the economy in the midst of growing fears about an impending a global slowdown, thanks to uncertainties continuing to weigh on the economy.
"With today’s numbers, this should provide some relief that the next recession is not coming in a matter of days or weeks," said Steve Rick, the chief economist at CUNA Mutual Group.
Still, while the number is better than expected, policymakers at the Federal Reserve are unlikely to reverse course on their expected decision to lower interest rates at the end of the month. Most analysts expect the U.S. central bank to cut the benchmark federal funds rate by 25 basis points at its July 31st meeting, lowering the rate to a range between 2.00 percent and 2.25 percent.
"Despite it being hotter than most predicted it probably won’t derail the Fed," said Mike Lowengart, Vice President of E*Trade Financial Corporation. "it will likely stoke greater anticipation for a rate cut next week and easing monetary policy from the Fed."