U.S. economy grew by annual rate of 2.4 percent in second quarter

The U.S. economy expanded by an annual rate of 2.4 percent between April and June, powered by brisk government and consumer spending, and marking an acceleration of growth from the first three months of the year.

The new gross domestic product figures, released Thursday by the Bureau of Economic Analysis, showed the economy expanded for the fourth straight quarter in a row.

The economy’s resilience, bolstered by a healthy job market, has surprised even the most optimistic economists. It has also forced the Federal Reserve to extend its aggressive fight against inflation with another interest rate hike on Wednesday, pushing borrowing costs to a new 22-year high. Fed staff, who a few months ago had worried about a “mild” recession, are no longer forecasting an imminent downturn.

“The economy has remarkably avoided a recession,” said Diane Swonk, chief economist at KPMG. “That’s put the Fed in a nice position; it’s emboldened them to really go all-in against inflation. But the question is: How long can this strength persist? Are there still effects from higher interest rates that we haven’t seen yet?”