CoinVoice has recently learned that, according to market forecasts, data released by the U.S. Department of Commerce on Wednesday will show that the seasonally and inflation-adjusted third quarter Gross Domestic Product (GDP) is growing at a strong annualized rate of 3%, unchanged from the previous value. If this expectation comes true, it will mark the U.S. economy's continuous expansion for the 10th consecutive quarter.
Meanwhile, the market also expects the report to show that the core PCE price index for the third quarter will significantly slow from the previous value of 2.8% to 2.1%, close to the Fed's 2% inflation target. The Fed uses the PCE price index included in the GDP estimate as its primary inflation indicator.
Another driving factor for the Federal Reserve's policy rate cut is inflation, with the core PCE price index for the second quarter likely approaching the Fed's target. Citigroup expects U.S. GDP growth to fall below expectations at only 2.6%, but anticipates that the inflation measure for the quarter will reach the 2% target, a figure that may help solidify Fed officials' decision to cut rates by only 25 basis points next week. (Jin Shi) [Original link]
