Will Robust Q3 GDP Growth Complicate The Inflation Outlook?

What happened: The preliminary estimate of third quarter U.S. GDP is expected to show a strong acceleration in economic activity from the second quarter, despite elevated interest rates and geopolitical uncertainty. Why it matters: A stronger-than-expected reading could reinforce concerns that underlying price pressures remain sticky while raising expectations for near-term Federal Reserve rate hikes.

The preliminary estimate of third quarter U.S. GDP is expected to show a strong acceleration in economic activity from the second quarter, despite elevated interest rates and geopolitical uncertainty.

A stronger-than-expected reading could reinforce concerns that underlying price pressures remain sticky while raising expectations for near-term Federal Reserve rate hikes.