Fed rate hike may come sooner than expected

Last week’s second-quarter GDP report from the US showed that the economy has rebounded after a weak start to the year.

The economy grew by 1% in the quarter, well above expectations.

The report confirmed that the 0.5% contraction in GDP in the opening quarter of the year was due to exceptional factors, such as some very severe winter weather that badly hampered activity, rather than any fundamental weakness in the economy.