The U.S. economy experienced faster growth in the second quarter, driven by robust consumer spending and business investment. Despite lingering uncertainty from trade policy, the Commerce Department reported a 3.8% increase in GDP, the highest rate in nearly two years. A sharp contraction in the trade deficit, along with strong demand for equipment and a drop in unemployment benefits, contributed to this growth.

While economists expect a tempered second half of the year due to trade policy uncertainty, the upward revision in consumer spending and business investment indicates a stable economy. With initial claims for unemployment benefits decreasing and continuing claims falling, the labor market remains steady. Overall, the data suggests that further interest rate cuts may not be necessary, highlighting the resilience of the U.S. economy.