Economy defies expectations, poised for growth.

Despite concerns of a recession, the US economy is still growing due to strong consumer spending and job security. GDP is forecasted to increase by 1-2% in Q2, and Q1 growth may be revised up to 2%. Higher interest rates have had some negative effects on housing and manufacturing, but consumers have largely shrugged them off and continue to spend. The Fed's fight against inflation is showing progress, with worker pay rising faster than inflation for the first time since March 2021. However, many economists still predict a recession in late 2023 or early 2024 due to continued rate hikes.