WASHINGTON Breaking News: Second-quarter GDP to Slow Sharply on Tax Burden

Wochit 1:10 mins

Economic growth probably slowed sharply in the second quarter, but its pace is unlikely to change views that the Federal Reserve will start trimming bond purchases later this year. The slowdown is expected to be temporary, with an acceleration in output forecast for the rest of 2013 as the drag from higher taxes and deep budget cuts wanes. The Israeli and Palestinian delegates sitting down for preliminary peace talks in Washington are veterans of on-and-off negotiations that began more than two decades ago. The chief Palestinian negotiator has joked that he has spent more time with an Israeli negotiator than with his own wife. Such familiarity could be seen as a blessing or a curse, assuring a smooth return to talks or blocking creativity. Contracts to purchase previously owned U.S. homes fell in June, retreating from a more than six-year high touched the prior month, suggesting rising mortgage rates were starting to dampen home sales.

View Comments