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US economy is booming: an eye on growth, full employment and inflation
The US economy is booming, at least that's what the latest figures suggest. In the third quarter alone, it recorded growth of 5.2 percent – extrapolated to a year. In addition, there is almost full employment, the unemployment rate increased only slightly to 3.9 percent in October, and yet inflation is falling - although at 3.9 percent it is still well above the US Federal Reserve's two percent target. But there will probably be no more interest rate increases. Federal Reserve Chairman Jerome Powell does not explicitly rule this out, but he considers the current monetary policy to be quite restrictive and tends to slow down the US economy. …
US economy is booming: an eye on growth, full employment and inflation
According to a report by www.derstandard.at,
The latest US economic figures point to robust growth. However, the high economic growth and almost full employment are accompanied by rising inflation, which is above the US Federal Reserve's target. Given these mixed signals, the Fed is unlikely to raise interest rates further. This could be positive for the stock market in the short term as lower interest rates encourage borrowing and investment. However, there is a risk of the economy overheating and rising inflation, which could lead to more restrictive monetary policy in the long term and slow down economic growth. Financial professionals should keep a close eye on U.S. economic market developments to evaluate any possible impact on their investment strategies.
Read the source article at www.derstandard.at