The U.S. economy grew at a robust 2.8% annualized rate in the second quarter of 2024, surpassing expectations and showing resilience despite high interest rates and inflation.

This growth was driven by increased consumer and business spending, which offset declines in housing construction and a widening trade gap. While consumer spending remained solid at 2.3%, there are signs of strain as Americans are saving less and relying more on credit, potentially indicating future economic challenges.

This strong economic performance may influence the Federal Reserve’s decisions on interest rates.