After achieving +3.1% GDP growth in Q1, the U.S. economy stayed healthy in Q2 at +2.1%. In July, according to the latest ‘Employment Situation’ report from the Bureau of Labor Statistics (BLS), +164,000 net jobs were created in America, on top of a +193,000 gain the month before.
The unemployment rate continues to sit at an exceptionally low 3.7%. Inflation is a little less than +2.0% year over year. All in all, the U.S. economy is in extraordinarily good shape.
How is the Federal Reserve responding? It just lowered its key policy-setting interest rate by 25 basis points (100 bps = 1.00%).