Daily Digest

U.S. Economy Returns To Pre-Pandemic Levels

The National Bureau of Economic Research said earlier this month that the pandemic recession was the shortest of all recent downturns – it lasted for just the two months of March and April 2020. Now, there’s news that the U.S. economy in the second quarter has grown at the fastest rate since last fall at an annualized rate of 6.5%.

The economy has now returned to its pre-pandemic levels in terms of real gross domestic product. The growth rate that economists forecasted was 8.5%, so while experts say there is a reason for celebration, there are still factors that could put a damper on the growth.

The economic recovery has mainly been fueled by consumer spending. As more businesses have reopened, consumers have spent more money on dining out and traveling.

Subscribe to our free weekly newsletter!

A week of political news in your in-box.
We find the news you need to know, so you don't have to.

The price index for personal consumption expenditures rose to 6.4% in the second quarter, the highest rate since 1982. The price index has been 6.1%, the highest rate since 1983. Meanwhile, experts at the Federal Reserve say that prices have risen because of supply constraints and labor shortages.

Fed Chairman Jerome Powell said that economists have cut down their expectations for GDP growth for the second half of the year because of the waning of fiscal stimulus money and price increases as well as lockdowns resulting from the delta variant spread.

Gabrielle Guz

Recent Posts

U.K. To Recognize Palestinian State In September Unless Israel Makes ‘Substantive’ Effort To End Conflict in Gaza

British Prime Minister Keir Starmer announced Tuesday that the United Kingdom will recognize Palestine as…

11 hours ago

After Former North Carolina Gov. Roy Cooper Launches Bid For Senate, Democrats Finally See A Path Back To Majority

Former North Carolina Gov. Roy Cooper (D) announced he will run for North Carolina’s open…

11 hours ago

Independent Voter Support For Trump Declines Significantly, New Poll Finds

President Donald Trump is losing support from independent voters, fueled by disappointment with the handling…

12 hours ago

Rep. Marjorie Taylor Greene Becomes First GOP Congressman To Call Situation In Gaza ‘Genocide’

Rep. Marjorie Taylor Greene (R-Georgia) dubbed the humanitarian conflict in Gaza a “genocide” in a…

16 hours ago

GOP Rep. Thomas Massie Slams Speaker Mike Johnson For Blocking Effort To Release Epstein Files

Rep. Thomas Massie (R-Kentucky) and Rep. Ro Khanna (D-California) are leading a bipartisan push to…

17 hours ago

Trump Administration Invests Millions In Creating Mega Database Of Americans’ Private Data

The Trump Administration is working with tech company Palantir to collect all unclassified information about…

2 days ago