Policymakers and advisors closely monitor economic indicators to understand recession risk and the direction of interest rates because the data can ultimately impact business decisions and financial markets. Gross Domestic Product (GDP) In the second quarter of 2023, the U.S. economy continued to move forward, though at a slower pace than initially thought – a positive sign for the Federal Reserve in their fight against inflation. Exploring the factors behind this revision reveals that consumers have displayed remarkable resilience amidst the challenging economic landscape characterized by inflationary pressures and rising interest rates.