US Economy Grows 3.8% as Government Shutdown Threat Looms

The U.S. economy expanded at a 3.8% annual rate during the second quarter of 2025, marking its fastest growth since the third quarter of 2023 and exceeding long-term trends. This robust performance represents a significant recovery from the first quarter's 0.5% contraction, which was attributed to business hesitation amid tariff concerns. Recent jobless claims data came in below expectations, suggesting the labor market remains resilient despite some cooling in summer employment figures.