Economy beats expectations

Gross domestic product expanded at an annualized rate of 3.4% over the three months ending in September, exceeding economists' expectations of 3.1%.

Growth accelerates from prior quarter

The third quarter reading marked an acceleration from 2.2% annualized GDP growth in the previous quarter and outpaced 2.5% growth in the first three months of the year.

Consumer spending drives growth

An uptick in consumer spending and an acceleration of investment made up the primary causes of economic growth. Consumer spending, which accounts for about two-thirds of US economic activity, rose at a solid pace.

Inflation surge poses challenge

Economic growth this year has come amid a surge of inflation set off by the Iran war in late February.Prices increased 3.

Fed Chair signals optimism

Speaking at a press conference in Washington, D.C., on Wednesday, Fed Chair Kevin Warsh voiced optimism about US economic performance, even as he acknowledged the challenge posed by elevated inflation.

“Economic activity is expanding at a strong pace. While uncertainty remains, owing in part to geopolitical developments, domestic spending has been resilient.”

Rate hike odds climb to 85%

The central bank raised interest rates a quarter of a percentage point last month. On Wednesday, the Fed left rates unchanged, but odds of a quarter-point rate hike at the December meeting are pegged at…

Another hike risks economic slowdown

Another potential rate increase would mean pressing the brakes harder on the economy, in turn risking sluggish growth and slowing the job market further.