US GDP SURPRISE: Q3 SMASHES EXPECTATIONS, RECESSION FEARS FADE FAST
The U.S. economy just delivered a shockingly strong Q3, and the numbers speak loud. GDP grew 4.3% QoQ, crushing forecasts of 3.2% and accelerating from the prior 3.8%. This wasn’t a fluke—it was a broad-based show of economic resilience.
Even with cracks forming in the labor market, growth momentum refused to roll over. Consumption held up, activity stayed hot, and the long-feared recession keeps getting pushed further out. That changes the macro narrative fast.
More importantly, with growth strong and inflation showing signs of cooling (pending confirmation), the Fed may finally have room to shift focus toward labor weakness instead of fighting overheating demand. Rate cuts aren’t guaranteed—but they’re back on the table.
Strong growth + easing inflation is a powerful mix.
Markets should pay attention.