The U.S. Gross domestic product rose by an annualized rate of 2.6% during the third quarter, according to initial estimates released by the Bureau of Economic Analysis. While the economic growth underscores that the United States is not currently in a recession, economists cautioned that the latest GDP report doesn’t mean one isn’t looming.
Although consumer spending grew by 1.4% on an annualized basis in the third quarter, it is down from the first two quarters, meaning consumer spending is starting to soften. Moreover, the Fed is widely expected to continue its aggressive rate hikes to tame sky-high inflation that rose 8.2% in September, with the core Consumer Price Index up 6.6%.
