The US economy grew at a 2.8% rate in the second quarter, indicative of continued consumer resilience as the Federal Reserve considers cutting interest rates in the coming months. Research data from the Bureau of Economic Analysis states that the US economy surpassed expectations in the second quarter, in the light of dismal 1.4% growth in the first quarter.

According to recent data, the central bank is making progress toward reducing price pressures to the aim of 2% without inciting a recession. The consumer price index report from June indicates that US inflation is currently at about 3%.

After the announcement of the GDP figures, traders in the futures market modestly lowered their expectations on interest rate reduction, while two to three cuts this year are still anticipated. At lunchtime, the two-year Treasury yield, which is based on forecasts for interest rates, remained unchanged.

Dan North, senior economist at Allianz Trade, noted that the quarterly GDP report also contains the Fed’s favored measure of inflation, the personal consumption expenditures price index. “Maybe inflation is more important in this report than growth,” North said.

Brusuelas of RSM said he thinks the central bank shouldn’t wait that long, given that the economy is slowing and inflation is headed down. “We think that the Fed is missing an opportunity to get out ahead of the curve on an economy that is cooling,” he wrote in a research report.