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Following the second quarter’s 2.8% GDP expansion, economic signals have become more mixed as the labor market shows signs of softening. Several classic signs of recession point to a slowdown.
U.S. GDP growth surprised to the upside in Q2, with consumer spending, business investment and other outlays contributing. Meanwhile, the housing market continues to slow.
The economy continues to hold up, but is showing some weakness. CPI inflation slipped to 3.0% last month, just what the Fed is looking for.
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