US economy soars as consumers fend off Federal Reserve’s interest rates

The US economy soared in the third quarter of this year, despite the Federal Reserve’s efforts to restrict spending with its high interest rates. From July to September, gross domestic product grew at an annualized rate of 4.9% — sharply up from 2.1 per cent in the previous quarter and surpassing expectations according to the wall street journal once more.

The Commerce Department said third-quarter growth “reflected accelerations in consumer spending, private inventory investment, and federal government spending and upturns in exports and residential fixed investment”. “Bidenomics” has evidently been effective in promoting strong economic activity.

Even with strong economic growth, President Joe Biden remains hamstrung by consumers who still feel the pinch of inflation, which has fallen to 3.7 per cent since a peak of 9.1 per cent last year. In response, Interest rates have skyrocketed to 5.4%. However, consumers have been able to fend off those rate increases due to a strong labor market.

Source: Collins, Colin. “Space Solar Farms Edge Closer to Reality: Pioneering Study Shows Viability.” SciTechDaily, 7 Dec. 2023. scitechdaily.com/space-solar-farms-edge-closer-to-reality-pioneering-study-shows-viability. [Date accessed: 19/12/2023.]