The U.S. Bureau of Economic Analysis said Thursday real GDP rose at a 3.4% annualized rate in Q3 versus 2.2% in spring, the fastest pace in a year. Personal consumption, which accounts for more than two-thirds of U.S. output, grew 3.8%. Firms are sharply increasing AI-related investment while consumers continue to spend despite elevated prices. Polls ahead of next week’s midterm elections show voters frustrated by high living costs and blaming President Trump and House Republicans, but prelimina

A Fed‑watched inflation gauge accelerated in September, keeping price pressures elevated less than a week before U.S. midterm elections. The U.S. Commerce Department said consumer prices rose 3.6% YoY in September versus 3.4% in August; prices rose 0.5% MoM, up from 0.3% in August and the largest monthly gain since May. Core inflation, excluding volatile energy and food, also accelerated. Higher oil and gasoline after the Iran conflict have worsened annual inflation; U.S. crude remains above $100/bbl versus under $70 pre‑conflict and the national average gasoline price is about $4.25/gal. Polls show the inflation rebound has left most voters dissatisfied with the economy and Trump’s handling of living costs; Trump has pledged during his 2024 campaign to lower prices, including gasoline below $2/gal.

Fed chairman Kevin Warsh said the Fed had just undergone a heated internal debate.