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Second-quarter GDP grows from initial estimate

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According to Reuters, the U.S. economy is growing at a faster clip, with gross domestic product increasing to a 2.5% annual rate for the second quarter. While this bolsters the case for winding down Fed intervention, unemployment remains stubbornly high. Reuters has more:

The report could boost confidence that the economy is turning a corner despite government austerity measures. At the same time, a full recovery from the 2007-09 recession is probably years away as the U.S. jobless rate remains historically high at 7.4%.

Still, the data could make officials at the U.S. central bank more confident in their plan to begin reducing monthly bond purchases later this year. The program has reduced borrowing costs and helped spark a recovery in the nation's housing market, which collapsed during the recession

Source: Reuters
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