The U.S. economy is growing at a 3.2 percent annualized pace in the second quarter based on data on May retail sales and consumer prices, the Atlanta Federal Reserve’s most recent GDP Now forecast model showed.
The latest second-quarter gross domestic product estimate was stronger than the previous reading of 3.0 percent calculated on June 9, the Atlanta Fed said.
The revision came just after the Fed raised interest rates on Wednesday for the second time in three months and said it would begin cutting its holdings of bonds and other securities this year, signaling its confidence in a growing U.S. economy and strengthening job market.
In lifting its benchmark lending rate by a quarter percentage point to a target range of 1.00 percent to 1.25 percent and forecasting one more hike this year, the Fed seemed to largely brush off a recent run of mixed economic data.
The U.S. central