Something is happening to the US economy only seen once before

The US economy accelerated past quarter, pinch consumers and businesses expanding their spending contempt nan continual unit of precocious liking rates.

Economists said that this could mean nan system is connected way to instrumentality a alleged 'soft landing.' This has only ever happened once, they opportunity - and it is bully news for nan stock market.

This uncommon slowdown is erstwhile nan complaint of inflation returns to nan Federal Reserve's 2 percent target without triggering a recession. 

Gross home merchandise (GDP) - a measurement of each nan equipment and services produced successful nan US - roseate astatine an yearly complaint of 2.8 percent for April done June to $22.9 trillion, according to Commerce Department figures released Thursday. 

This was faster than nan first 4th maturation and good supra nan yearly complaint economists had predicted - successful a powerful show of nan resilience of nan US economy.

 The GDP study showed that businesses are continuing to put and family spending remains strong.

This is important because user spending makes up astir two-thirds of economical output successful nan US.

Stocks roseate aft nan merchandise of nan report, pinch nan Dow Jones Industrial Average up astir 0.6 percent initially. 

Wall Street wants a soft landing - which is why stocks roseate somewhat coming aft declines successful caller days. 

A beardown banal marketplace is bully for 401(K)s and different status accounts - which are mostly invested successful indices for illustration nan Dow, nan Nasdaq and nan S&P and via shares of individual US companies for illustration Apple. 

Alongside nan maturation of nan economy, ostentation besides resumed a downward inclination successful nan 3 months to June, heading person toward nan Fed's 2 percent target rate. 

The annual complaint of ostentation was 3 percent successful June, falling 0.1 percent period connected period from May. 

The latest figures should reenforce assurance that nan US system is connected nan verge of achieving a uncommon 'soft landing,' CNN reported.

This feat has only happened once, during nan 1990s, according to immoderate economists. 

Experts person agelong predicted that nan precocious borrowing costs brought successful by successive liking complaint hikes would extremity nan US into a recession, but it has alternatively remained enduringly strong.

Fed officials person made it clear that they would see cutting liking rates arsenic ostentation edges towards their target, thing they are wide expected to do successful September. 

The Fed will beryllium reassured by Thursday's GDP report, Bill Adams, main economist astatine Comerica Bank told Associated Press.

'With ostentation trending lower...the Fed thinks that it's getting adjacent to nan clip to trim liking rates.'

Interest complaint reductions by nan Fed would, complete time, trim consumers' borrowing costs for services for illustration mortgages, car loans and in installments cards.

Though ostentation has dropped importantly from its 40-year precocious of 9.1 percent successful June 2022, stubborn ostentation has meant prices for galore mundane equipment stay good supra pre-pandemic levels. 

According to Labor Department data, nutrient prices person risen 20 percent successful nan past 5 years.

The costs of some mundane essentials has jumped overmuch more - pinch eggs and beverage now costing double what they did successful 2019.