Even though there was a slight decline in inflation in July from the 40-year high, it still remains elevated. This, along with a robust job market, could encourage the Fed to continue maintaining its hawkish stance to bring inflation down to its target level.
According to the "second" estimate released by the Bureau of Economic Analysis, GDP decreased at an annual rate of 0.6 percent in the second quarter of 2022. Real GDP fell 1.6% in the first quarter.
