-Janet Yellen, Fed Chair
Estimates of growth in the US gross domestic product from the Federal Reserve Bank of Atlanta, Macroeconomic Advisers and Barclays Capital suggest the world's biggest economy rebounded in the second quarter after the winter slump. The US economic output is predicted to have risen at an annual rate of above 2%, after contracting in the first three months of the year at a 0.2% pace. The estimates bolster the broadly held opinion among economists and policy makers that the US economy's winter weakness was caused by temporary factors such as bad weather and West Coast port closings. If the economy's growth meets expectations, this increases the chances the Fed will hike short-term interest rates later this year.
The Atlanta Fed GDPNow tracker estimates the US GDP rose at a 2.3% annualized rate in the three months through June. Macroeconomic Advisers' prediction is a bit rosier, with the firm predicting a 2.8% growth rate amid signs of inventory build-up during the quarter. The company expects the same gain in the July-though-September period. Meanwhile, Barclays Capital's tracker suggests the economy grew 3.7%, up from 3.5% estimated earlier. Fed officials said they remain on track to begin raising the benchmark federal funds rate from near zero by year end.
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