U.S. economic growth slows, suggesting a darkening outlook for the global economy.

Members of the Federal Reserve’s Open Market Committee approved another 25-basis point interest rate increase this week, after previously pausing the hiking campaign at the committee’s July meeting. The central bank’s target federal funds rate range is now between 5.25- 5.5%—the highest level since 2001. Fed Chair Jerome Powell noted that the Fed’s staff are no longer forecasting a recession.

Gross domestic product grew at a seasonally- and inflation-adjusted 2.4% annual rate in the second quarter, the Commerce Department announced. That was faster than economists expected and above the 2% growth in the first three months of the year.

Wall Street has dialed back its recession forecasts.

U.S. home-builders broke ground on more new projects in May, as strong demand from buyers and a limited supply of homes for sale outweighed higher costs brought on by rising interest rates. Housing starts jumped to an annual rate of 1.6 million last month, the Commerce Department announced, the fastest pace in more than a year.

The employment-cost index, a measure of compensation growth closely watched by Fed officials, rose 4.5% last quarter from a year earlier, slowing from a 4.8% increase between January and March. The personal-consumption expenditures price index, the Fed’s preferred inflation measure, rose 3% in June from a year earlier, the Commerce Department announced in a separate report. That was down from a 3.8% rise the prior month.

Worker filings for unemployment benefits, a proxy for layoffs, declined by 7,000 last week to a seasonally adjusted 221,000, the Labor Department announced. That was the lowest level since February and close to 2019’s average of about 220,000.