With just days remaining until the upcoming election, the US economy has achieved a significant milestone. The Commerce Department reported that the gross domestic product (GDP) expanded at an annualized rate of 2.8% in the third quarter, slightly lower than the previous quarter's 3% but surpassing economists' projections of 2.6%. GDP, which measures all goods and services produced in the economy, is adjusted for seasonal fluctuations and inflation.
During the July to September period, as the US economy continued its growth, inflation moved closer to the Federal Reserve's target of 2%. This development has led several economists to suggest that the economy has successfully achieved a rare feat known as a soft landing, where inflation is controlled without triggering a recession.
Former president of the Federal Reserve Bank of St. Louis, James Bullard, expressed his opinion on this accomplishment, stating, 'I think we should declare a soft landing now.' This sentiment reflects the overall positive outlook on the current state of the economy.
The report also highlighted that consumer spending played a crucial role in driving economic growth in the third quarter. Consumer spending, which accounts for approximately 70% of economic output, continued to bolster the economy during this period.
