New York, July 30- The second quarter of the year has seen a notable decrease in the rate of inflation in the United States, alongside a positive shift in the growth of the economy. These economic trends could significantly influence the upcoming presidential election.
As the campaign for the November US presidential election intensifies, economic issues, including rising inflation and the central bank's policy interest rates, have become focal points of discussion.
The US Department of Commerce recently reported that the economy showed signs of stability in the second quarter of this year. The Federal Reserve's ongoing efforts to combat inflation are beginning to yield positive results, with inflation approaching the Fed's target of 2%. In June, the Personal Consumption Expenditure (PCE) index stood at 2.5%, slightly down from 2.6% in May.
The US economy grew by 2.8% in the April-June quarter, a growth rate considered satisfactory given the pressures of inflation and high interest rates. The Federal Reserve's strategy of raising interest rates to curb inflation appears to be effective, and concerns about a potential recession have not materialized.
However, economists caution that if the high interest rates persist, they could have negative implications for both the US and global economies. Given the influence of US policy interest rates on the global economy, a sustained period of high rates could create challenges worldwide. Several economists expressed this concern in statements to CNN.
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