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Yardeni Research has confirmed that the U.S. economy is strong, with a noticeable increase in consumer spending and industrial investments in the second quarter. Real consumer spending rose by 3.3%, and non-residential business investments increased by 8.4%. The company believes that Federal Reserve officials should adopt a more hawkish stance on monetary policy, especially given the inflation risks that outweigh the risks of a slowdown in growth, along with the growing discord among Fed members over the pace of interest rate hikes. It also pointed out that the strength of the services sector and the ongoing expansion in artificial intelligence are supporting economic growth, despite some reports indicating uncertainty about job creation in July.
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