WS #16522
The US economy expanded at a 3.4% annualized rate in Q3, significantly beating expectations, while core PCE inflation held firm at 3.1%. This data reinforces the 'soft landing' narrative but complicates the Federal Reserve's path, as sticky inflation suggests rate cuts may be delayed. The strength in GDP supports consumer-facing sectors but keeps pressure on rate-sensitive growth stocks.
US Macro Strength
The US economy expanded at a 3.4% annualized rate in Q3, significantly beating expectations, while core PCE inflation held firm at 3.1%. This data reinforces the 'soft landing' narrative but complicates the Federal Reserve's path, as sticky inflation suggests rate cuts may be delayed. The strength in GDP supports consumer-facing sectors but keeps pressure on rate-sensitive growth stocks.