The economy grew at a faster clip in the second quarter and inflation was slower than originally reported, a government report said on Wednesday, suggesting the Federal Reserve will keep interest rates steady.
The U.S. economy grew at a 2.9 percent annual pace in the second quarter, faster than the 2.5 percent rate initially reported but marginally below what analysts were expecting, as higher business investment offset a drop in residential construction, a Commerce Department report showed.
At the same time, an inflation gauge favored by the Federal Reserve — which measures personal consumption expenditure prices minus food and energy — was revised to 2.8 percent, the biggest rise since the first quarter of 2001. The inflation index originally was reported to have risen by 2.9 percent when figures were released last month.
