Market analysis: The latest GDP data bodes well for the Fed, which may start cutting interest rates as early as September

Preliminary estimates from the U.S. government showed that gross domestic product grew at an annualized rate of 2.8% in the second quarter, after growing 1.4% in the previous quarter. Personal spending, the economy's main growth engine, rose 2.3%, also higher than expected. A closely watched underlying inflation measure rose 2.9% in a report released by the Bureau of Economic Analysis on Thursday, slowing from the first quarter but still above expectations. Although the pace of growth accelerated from the first quarter, the data is still slower than last year. Under the weight of high interest rates, consumer spending and broader economic activity have cooled, which also helps to gradually curb inflation. This is a good sign for the Federal Reserve. The Fed is working to achieve a soft landing for the economy and may start cutting interest rates as early as September. (Jinshi)