Bloomberg News investigation… US GDP will be announced on the 26th
“Personal consumption expected to grow by 4%… Test bed for Federal Reserve policy”
In the third quarter of this year, the United States’ gross domestic product (GDP) was expected to record 4.3% (annual rate).
On the 23rd (local time), the U.S. economic media outlet Fortune reported that the U.S. economy is expected to have grown this way thanks to strong consumer spending, citing the results of a survey of economists conducted by Bloomberg News. Bloomberg News assessed that this growth shows that the United States is still a powerhouse in the global economy while Europe is struggling and Asia is struggling with China’s struggles.
Personal consumption, the main engine of the U.S. economy, is expected to grow by 4%. Bloomberg reported that this demand, which shows economic resilience, is testing the policy capabilities of the Federal Reserve (Fed). Although inflation has come out of its peak, it is still twice the target level.
On the 26th, the U.S. Department of Commerce is scheduled to release the GDP report for the third quarter of this year.
The report is unlikely to be enough to induce the Federal Reserve to raise interest rates in November. However, if the current consumer spending trend is maintained, the possibility of further tightening at the end of the year is bound to increase.
On the 19th, Federal Reserve Chairman Jerome Powell also said, “If we see continued above-trend growth or if there is further evidence that a strong labor market is no longer easing, inflation could deepen further and further tightening may be necessary.” There is a bar.
Personal consumption expenditures (PCE), scheduled to be announced on the 27th, are also expected to be an indicator of household demand and inflation momentum.
Economists forecast core PCE, excluding energy and food costs, to increase by 3.7%. This is the smallest annual increase since May 2021, and shows gradual progress in inflation, Bloomberg News explained.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.