《U.S. GDP Data Tonight Draws Attention, Economic Situation and Inflation Expectations Capture Market Focus》

Fasten your seatbelts, U.S. GDP data is about to be released tonight, potentially stirring up the market!

In the third quarter of this year, the U.S. economy seems to have a divine assist, appearing to successfully evade potential risks and demonstrating robust momentum.

According to market forecasts, the data released by the U.S. Department of Commerce on Wednesday is expected to show that the seasonally and inflation-adjusted Gross Domestic Product (GDP) for the third quarter is anticipated to grow at a substantial annualized rate of 3%, remaining unchanged from the previous value. If this forecast comes to fruition, it would mean that the U.S. economy will have expanded for the 10th consecutive quarter, undoubtedly a remarkable achievement.

At the same time, the market also estimates that the report will present changes in the core PCE price index for the third quarter. This index is expected to significantly slow from the previous value of 2.8% to 2.1%, getting closer to the Federal Reserve's target inflation rate of 2%. It's worth noting that the Federal Reserve has consistently used the PCE price index included in the GDP estimate as its primary measure of inflation.

In the Federal Reserve's policy decisions, inflation is a key factor. The core PCE price index for the second quarter is likely to gradually approach the Fed's target.

In fact, Citigroup has a different view; they anticipate that U.S. GDP growth will be below general expectations at only 2.6%, but they also expect the inflation measure for the quarter to hit the 2% target. This prediction may influence the decisions of Federal Reserve officials, possibly prompting them to implement only a 25 basis point rate cut next week. All market participants are eagerly awaiting the release of tonight's data and the potential chain reactions it may bring.