By Kristin Myers, Editor-in-Chief

What's Happening Today

Looks like the economy isn't doing as badly as we had originally thought. While gross domestic product (GDP) did decline in the second quarter this year, the second estimate from the Bureau of Economic Analysis (BEA) this morning showed it only sank 0.6%, better than the 0.9% originally estimated. The upward revision was due to an increase in exports, and stocks are rising in the wake of this better-than-expected data.

This figure comes a day ahead of the release of an important measure of inflation, personal consumption expenditures (PCE). The PCE Price Index is the Federal Reserve's preferred way to gauge inflation because it provides a more accurate picture of inflation for people in the U.S., compared to the Consumer Price Index (CPI), which primarily looks at inflation for urban shoppers.

So why is this so important right now? Central bankers are in Jackson Hole, Wyoming today, kicking off the three-day Jackson Hole Economic Symposium. Tomorrow, Fed Chair Jerome Powell will give a speech that could offer more insights into how the central bank views the economy, and any future moves it'll make on interest rates. The Fed has been aggressively raising interest rates as policymakers fight to bring down inflation.

The Fed's efforts have raised fears about the ability of the economy to withstand an economic slowdown, which could cause a recession. But with GDP sinking less than we thought, combined with a strong jobs market, the Fed's case could remain that the U.S. economy is strong enough to handle rising rates.

- Kristin

Editors' Picks

US Growth Has Continued, One Official Measure Shows (The New York Times)

Biden Grants $10,000 in Student Loan Forgiveness (The Balance)

How Biden's Student Loan Forgiveness Helps You (Or Not) (The Balance)

Are Private Student Loans Eligible for Forgiveness? (The Balance)

Fed's George Says It Has To Get Rates Higher To Slow Down Demand (Bloomberg)

The Backlash Against Quiet Quitting Is Getting Loud (The Wall Street Journal)

Is It Time to Look for a New Credit Card? (The Balance)

Term of the Day

Balance of Trade

The balance of trade is the value of a country's exports minus its imports. It's the biggest component of the balance of payments that measures all international transactions. It's relatively easy to measure since all goods and many services pass through the customs office.

The trade balance is also the biggest part of the current account. It measures a country's net income earned on international assets. It's the trade balance plus any other payments across borders.

Off the Charts

President Joe Biden's long-awaited decision on student loan forgiveness has finally been made—and his plan will clear the debts of millions of borrowers, but might have a minimal impact for others.

If you have a federally held student loan, $10,000 of it will be forgiven as long as you make less than $125,000. If you received a Pell Grant (typically for students from lower income families), you'll be eligible for $20,000 of forgiveness. On top of that, the student loan pause that's halted interest and required payments since the pandemic began has been extended again, this time to Dec. 31.