US GDP rose at a 3.4% annualized pace in Q3, preliminary data showed on
Thursday, topping a 3.2% median in a Refinitiv survey and a market range of
1.0%–4.2%. Strong consumer spending and AI-led business investment offset
oil-price rises tied to the Middle East conflict. The release comes less than a
week before next Tuesday's US midterms and alongside sharply weaker consumer
confidence. Growth exceeds the roughly 2% pace many Fed officials view as
non-inflationary; the Fed on Wednesday held its policy rate at 3.75%–4.00% and
said inf remains elevated. Economists expect a December rate hike. Fed Chair
KEVIN WARSH said, “Economic activity is expanding at a strong pace,” adding that
geopolitical uncertainty persists but domestic spending has shown resilience.
