🇺🇸 US Economy Defies Gravity: Q3 Growth Smashes Expectations!
The latest Q3 data reveals a U.S. economy that is running much hotter than anticipated, fueled by a massive surge in consumer spending. Here is what you need to know:
GDP Hits 4.3%: Economic growth significantly outperformed the 3.3% forecast, proving that the American engine is still firing on all cylinders despite high interest rates.
Consumers are Spending: Personal Consumption (PCE) jumped to 3.5%, nearly a full point higher than the previous quarter. People are still buying, specifically in the automotive and service sectors.
Inflation is Sticky: Core PCE inflation rose to 2.9%. While this met forecasts, it remains well above the Fed's 2% target, complicating the path for future interest rate cuts.
This "Hot GDP + Sticky Inflation" combo suggests the Federal Reserve may stay "higher for longer" with interest rates to prevent the economy from overheating.
