The data from the US on Thursday showed blockbuster GDP growth:
And this wasn’t too shabby either:
Back to the economic growth data.
In response Fitch ratings, first on the headline GDP result:
- stunningly-strong 4.9% annualised gain in third-quarter GDP
- Economic growth transitioned from resilience to reacceleration this quarter, defying the Federal Reserve’s aggressive tightening cycle and tighter financial conditions
- suggests that the Fed needs to do even more
And then on the detail re inflation, the Core PCE down to 2.4% :
- just as notable was the slowdown in core PCE
Fitch concludes, on balance:
- Under those circumstances, the Fed can afford to stay on the sidelines
—
ps. Core PCE is an FOMC benchmark inflation indicator