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US Economy Growth Speeds Up Sharply in 2nd Quarter of 2014


    From VOA Learning English, this is the Economics Report.

    The United States says its economy expanded quickly from April to June. The U.S. economy grew at a yearly rate of 4 percent, much better than the first three-month of 2014. During that period, the nation's gross domestic product shrink at a rate of more than two percent. The GDP is the total value of all goods and services produced in the country.

    Experts credited increased consumer and business spending for the economic growth. The expansion appeared to extend across economy. U.S. exports grew sharply, businesses bought goods for re-sale, and state and local governments increased spending.

    US Economy Rebounds Strongly in 2nd Quarter of 2014

    In late July, President Barack Obama spoke to supporters in Kansas City. He said the latest economic numbers were another sign that things are getting better.

    "None of this is an accident. It's thanks to the resilience and resolve of the American people. It's also thanks to some decisions we made early on and now America's recovered faster and come farther than just about any other advanced country on Earth," said Obama.

    The economic news had little effect on financial markets. Investors appeared unmoved because this was just the first of several reports for the period from April to June.

    Economist Sean Snaith is with Central Florida's Institute for Economic Competitiveness. He says it is too early to celebrate the economic gains. He spoke to VOA through Skype.

    "I think it's good news but we need to string this good news together over time," said Snaith.

    Sean Snaith says what happens in the final six-month of 2014 will show whether the recovery will continue. He said what the U.S. central bank does next is very important.

    "How will the Federal Reserve react if in fact the economic recovery is gaining momentum? Will this speed up the timing and the pace of interest rate hikes? In which case, that certainly could take some air out of the stock market," said Snaith.

    The Central Bank -- the Federal Reserve system changed its opinion of the economy recently. The Federal Open Market Committee makes important decisions concerning financial policy. The committee said it plans to reduce bond buying by another ten billion dollars in August.

    The bond buying program has kept U.S. interest rates near record lows. Less costly credit has helped increased personal and business spending. The Federal Reserve also has signaled that it does not expect to raise interest rates soon. However, economists warn that low rates for a long period of time could fuel inflation.

    And that's the Economics Report for VOA Learning English. I'm Mario Ritter.