US Economy Grows 0.7 Percent in Second QuarterThe US economy increased at an annual rate of 0.7 percent during the second quarter of this year, the slowest pace in eight years, the Commerce department reported Friday.The 0.7 percent growth in the second quarter matched the projections of economists. The US economy began slowing since the second half of 2000, with the Gross Domestic Product increasing only 1 percent in the fourth quarter of 2000 and 1.2 percent in the first quarter of 2001. In an effort to stave off recession, the Federal Reserve slashed interest rates six times this year, for a total of 2.75 percentage points, driving down the cost of borrowing to the lowest point in more than seven years. Most analysts say the Fed's aggressive easing of monetary policy, coupled with the Bush administration's tax cuts and declining energy prices, will put the economy into high gear later this year. |
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