Today's Article

A key piece of economic data came in better than expectations while the Federal Reserve did what many expected.

The Federal Reserve not 1flinching amid President Donald Trump's pressure to lower interest rates and his criticism of Fed chief Jerome Powell.

"We see our current policy 2stance as appropriate to guard against inflation risks. We'3re also attentive to risks on the employment side of our 4mandate."

Trump has 5called on Powell to 6resign and for the Fed to lower interest rates, but Powell does not act alone.

Some of the Fed's other central bankers also want to 7take more time to 8gauge the impact of Trump's tariff policies before 9making a move.

On Wednesday, the Commerce Department said U.S. economic growth was up sharply to 3% between April and June.

But observers say the 10driving factor was businesses 11dialing down their imports after a first-quarter binge to stay ahead of Trump's tariff plans.

"Now we have this GDP number coming in really strong, just because those imports 12fell off a cliff. So, it's not necessarily a sign that we have this amazing 13economic expansion going on."

Economists say they'll continue to eye consumer spending as more trade deals 14fall into place and tariff threats 15subside with key U.S. trade partners like the European Union, which agreed to a 16framework deal with the U.S. on Sunday.

"With the EU deal, do we feel over the next few days or weeks that our consumers back on and wanting to spend because they feel like the tariffs are off? But we don't see that just yet."

And how the U.S. labor market 17holds up.

Unemployment has remained near and historic low, but gains across 18sectors have been narrowing.