US continues to post strong growth, focus turns to the FED

The US economy has posted year on year GDP growth of 3.5 per cent in the third quarter, with the second estimate coming in line with consensus forecast. The previous growth rate recorded in Q2 saw the US economy grow by 4.2 per cent, the highest rate since 2014, so whilst the US economy has slowed to an extent, growth is still strong compared to the average rate of 3.2 per cent seen since 1947. Markets are little moved by the news and focus will now turn to Federal Reserve (FED) Chair, Jerome Powell's statement later today taken with minutes from the Federal Open Market Committee (FOMC) and US inflation figures released on Thursday and Friday to gauge any potential change in the central bank's plans to continue raising interest rates past the current 2 to 2.25 per cent target.