Fed's Waller: Q3 US GDP Growth a 'Blowout,' But New Data Suggests Slowdown

Federal Reserve Governor Christopher Waller described the third-quarter US GDP growth of 4.9% as a "blowout" performance, but more recent data suggests a slowdown. Manufacturing and job growth cooled in October, a bank loan officers survey showed credit tightening and a drop in loan demand, and a New York Fed report noted a rise in consumer loan delinquencies. The Atlanta Fed's GDPNow model predicts a sharp drop in fourth-quarter GDP growth to 2.1%, which may prompt the Fed to hold interest rates steady in December. Rising debt stress and signs of a cooling labor market are also factors being considered by the Fed.