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US economy grew at 3.4% annualized rate in 3rd quarter, government data shows
ABC News - Breaking News, Latest News and Videos • • general
Key Points:
- The U.S. economy grew at an annualized rate of 3.4% in the third quarter, accelerating from 2.2% in the previous quarter and outperforming the 2.5% growth rate in the first quarter.
- Rising long-term Treasury yields have increased borrowing costs for consumers, potentially worsening financial pressures despite the economy's resilience in hiring and low unemployment.
- Increased investment in artificial intelligence by major companies has contributed to recent economic growth, supporting domestic spending amid global uncertainties.
- Federal Reserve Chair Kevin Warsh expressed optimism about economic expansion but emphasized the ongoing challenge of elevated inflation, with the Fed holding interest rates steady in their latest decision.
- The Fed is likely to raise interest rates again in December to combat inflation, which remains above the 2% target at 3.7%, though further hikes risk slowing economic growth and job market momentum.
