GDP growth of 4.3% in 3rd Qtr.

Late on the draw here . . .

Missed this over the last week. Been too busy doing other things with Angry Bear and looking for a Word Press expert who can help Angry Bear solve some issues. You have to wonder what Fed Chief Jerome Powell is going to do next. If you have been reading New Deal democrat (Richard), it appears we are on the edge of a recession of some type. I am hoping he waits. The returns or values on my funds are decreasing so what is in the past, is in the past. I think we are on the verge

Economist survey: GDP growth of 4.3% in 3Q, fastest in nearly 2 years, Fortune, Vince Golle, Craig Stirling, and Bloomberg.

The world’s largest economy “probably” expanded at the quickest pace in nearly two years during the third quarter and on the back of a steadfast US consumer. This presents a challenge for Federal Reserve officials who are debating whether additional policy tightening is needed.  

Gross domestic product advanced at a 4.3% annualized pace in the July-September quarter. This according to the median projection in a Bloomberg survey of economists. Such growth illustrates that the US remains the global economic powerhouse in 2023 as Europe stagnates and Asia contends with a struggling China.

The primary engine of the US economy growth, personal consumption is projected to advance at a 4% rate. Resilient demand is testing the policy skills of Fed officials of interest-rate hikes during the (almost) last two years. While inflation is well off its peak, price pressures are still running almost twice as fast as their goal.

Thursday’s GDP report will not be enough to nudge the Fed toward a November rate increase However, a sustained spending momentum in the fourth quarter would likely raise the prospects for additional tightening around the turn of the year.

Fed Chair Jerome Powell said at the Economic Club of New York on Thursday.

“Additional evidence of persistently above-trend growth, or the tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy.”

The policy? A serious interpretation? The peasants must pay to bring the economy under control. I know it is not standard economist jargon.

September income and spending data on Friday will give a sense of the momentum in household demand and inflation ahead of the fourth quarter. 

Forecasters see a 3.7% increase in the core personal consumption expenditures price index, which is one of the Fed’s preferred measures because it excludes often-volatile food and energy costs. That would be the smallest annual gain since May 2021 and consistent with modest progress on inflation.

In the end, I guess we shall see what FED Chair Powell thing should be done. “Thats all!”