US GDP Growth Unexpectedly Rose in Second Quarter

The video discusses a better-than-expected GDP report for the second quarter, highlighting changes in forecasts by the Fed. It covers personal consumption, price indexes, and jobless claims, noting a decrease in unemployment claims. Durable goods orders increased, and business spending showed significant growth. The report suggests strong economic growth, with consumer and business spending driving the economy. Government spending contributed less this quarter. The Fed may need to adjust forecasts and remain alert for potential rate hikes.

What was the reported GDP growth rate for the second quarter?

• 1.6%

• 4.2%

• 2.4%

• 3.8%

How did personal consumption change from the first to the second quarter?

• Increased from 1.6% to 4.2%

• Increased from 2.2% to 3.8%

• Decreased from 4.2% to 1.6%

• Remained constant at 2.4%

What was the percentage increase in business fixed investment in the second quarter?

• 10.8%

• 9.7%

• 7.7%

• 4.9%

Which component of GDP showed a decrease in government consumption?

• Business investment

• Durable goods orders

• Non-defense spending

• Consumer spending

What might the Federal Reserve consider based on the current economic indicators?

• Lowering interest rates

• Raising interest rates

• Maintaining current interest rates

• Increasing government spending