All articles tagged with #us gdp growth
US GDP growth in Q3 was driven significantly by AI-related investment, with concerns about the sustainability of this growth as much of it relies on massive capital expenditure in AI data centers, funded increasingly by debt, raising questions about potential bubbles and long-term returns.
Billionaire investor Bill Ackman predicts an early Federal Reserve rate cut, gold prices approach all-time highs, US GDP growth for Q3 2023 exceeds expectations, the Federal Reserve faces projected income shortfall, and Fed Chair Powell remains cautious on inflation.
The Federal Reserve Bank of Atlanta has raised its estimate for US economic growth in the third quarter from 4% to nearly 6%, citing a surge in new construction projects for single-family homes and better-than-expected industrial production. The forecast is driven by strong personal consumption, including a surge in car sales and sustained strength in retail sales. However, there are concerns that the Fed's prediction of positive residential investment may be too optimistic. Retail sales growth in July was the strongest since January, indicating a broad-based improvement across various sectors of the US economy.
Wall Street analysts are revising their expectations for interest rate hikes by the Federal Reserve in 2023, with Bank of America predicting two 25 basis point rate hikes, resulting in a terminal range of 5.50% to 5.75%. This revision is based on Federal Reserve Chair Jerome Powell's comments indicating a commitment to achieving a 2% inflation target, even at the risk of a potential recession. Bank of America also anticipates significant upward revisions to US GDP, with the third estimate of the second quarter GDP expected to be revised higher to 1.8% quarter-on-quarter seasonally adjusted annual rate.