Investigators focus on control-centre order after Spain train crashUS warns allies of renewed Iran strikes as Vance letter awaits replyRussian drone kills 14 at Dnipro station as Ukraine mounts record drone raidCongo Ebola outbreak passes 10,000 cases as neighbours and Europe weigh riskIsrael deadlocked as Likud claims Arab parties stole the voteLagarde to leave ECB early as bank holds rates at 2.5%Alphabet shares tumble after results, reviving worries over AI spendingOleshky truce holds as Europe splits over Putin callIran reports tankers hitting mines in Hormuz as US says main routes are clearBolsonaro calls himself Brazil's leader from Miami as Trump derides the voteGreek container ship sinks after naval drone attack off BulgariaSaudi-led coalition downs Houthi missile as UN warns of access crisis in TaizHong Kong leader apologises over Tai Po fire as housing secretary resignsEurope to release 42 million barrels as oil majors post record profitsNorth Korea fires about ten ballistic 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between drones and incarceration as UAE jails eight over Sudan armsUS imposes new sanctions on Rwanda over conflict in eastern CongoVolkswagen reports third-quarter loss of 5.8 billion eurosPentagon treats base freezer failures as suspected cyberattack after French supermarket sabotageRussia-Africa summit ends as Ethiopia receives Russian fighter jetsChinese tech stocks fall despite surge in chip salesFrench protests weigh on retailers and Macron as new rallies loomIsraeli strikes hit Gaza as Health Ministry urges Rafah openingCourts and prosecutors collide with election fights days before US midtermsVenezuela to offer state assets to private sector as Maduro trial judge diesAfghan opium cultivation surges despite Taliban ban, UN saysPound steady after Healey's 'continuity budget'DoorDash to buy Instacart for $17bnTaiwan suspects China behind brief Pakistani airspace ban on its airlinesAlbanian opposition disrupts parliament with flares after 17 days of protestsInvestigators focus on control-centre order after Spain train crashUS warns allies of renewed Iran strikes as Vance letter awaits replyRussian drone kills 14 at Dnipro station as Ukraine mounts record drone raidCongo Ebola outbreak passes 10,000 cases as neighbours and Europe weigh riskIsrael deadlocked as Likud claims Arab parties stole the voteLagarde to leave ECB early as bank holds rates at 2.5%Alphabet shares tumble after results, reviving worries over AI spendingOleshky truce holds as Europe splits over Putin callIran reports tankers hitting mines in Hormuz as US says main routes are clearBolsonaro calls himself Brazil's leader from Miami as Trump derides the voteGreek container ship sinks after naval drone attack off BulgariaSaudi-led coalition downs Houthi missile as UN warns of access crisis in TaizHong Kong leader apologises over Tai Po fire as housing secretary resignsEurope to release 42 million barrels as oil majors post record profitsNorth Korea fires about ten ballistic missiles as border dispute deepensUS growth beats forecasts as inflation climbs, raising pressure on FedStudy links Indonesian haze to over 5,200 deaths as Singapore sends envoyChina expels 33 officials and promotes General Zhang Shengmin to the PolitburoEUFOR helicopter crashes in Bosnia, at least three deadSamsung posts biggest profit in tech history as AI memory boom lifts Korea and JapanSerbia's RTS chief resigns and news editors replaced after student-led election winHaiti postpones presidential election to 2027 as El Salvador pledges troopsUS bans imports from three Chinese genomics firms and Chinese testing labs, Beijing protestsDeath toll rises to six after Cyclone Arnab hits eastern IndiaAnthropic's IPO filing sparks debate over $80bn loss and risk warningsChina threatens countermeasures over EU trade curbs as Steinmeier visits BeijingHebron lockdown enters second week as settlers accused of assaulting activists in West BankUN mission says Al Obeid civilians are trapped between drones and incarceration as UAE jails eight over Sudan armsUS imposes new sanctions on Rwanda over conflict in eastern CongoVolkswagen reports third-quarter loss of 5.8 billion eurosPentagon treats base freezer failures as suspected cyberattack after French supermarket sabotageRussia-Africa summit ends as Ethiopia receives Russian fighter jetsChinese tech stocks fall despite surge in chip salesFrench protests weigh on retailers and Macron as new rallies loomIsraeli strikes hit Gaza as Health Ministry urges Rafah openingCourts and prosecutors collide with election fights days before US midtermsVenezuela to offer state assets to private sector as Maduro trial judge diesAfghan opium cultivation surges despite Taliban ban, UN saysPound steady after Healey's 'continuity budget'DoorDash to buy Instacart for $17bnTaiwan suspects China behind brief Pakistani airspace ban on its airlinesAlbanian opposition disrupts parliament with flares after 17 days of protests
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Symbolic image: US growth beats forecasts as inflation climbs, raising pressure on FedSymbolic image

US growth beats forecasts as inflation climbs, raising pressure on Fed

10 sources

The US economy grew at a 3.4% annualized rate in the third quarter, while September inflation rose to 3.6%. Markets expect the Fed to raise rates in December.

The Bureau of Economic Analysis reported on Thursday, 29 October, that GDP beat the 3.2% economists expected and accelerated from 2.2% in the second quarter. The Financial Times and Reuters attribute the gain to consumer spending, up 3.8%, and AI investment, with private fixed investment rising 9.4%, its largest increase since 2020. Both offset higher fuel costs from the Iran war.

Inflation and the Fed

The PCE price index, the Fed's preferred gauge, rose to 3.6% in September from 3.4%, and core inflation to 3.1%. After the Fed held rates at 3.75%-4% on Wednesday, CME data show 86% of market participants expecting a quarter-point rise before year-end, Handelsblatt reports.

Doubts about the strength

Imports of tech equipment dragged on net exports, and the Guardian notes some economists doubt AI spending gives a true picture. Gasoline is above $4 a gallon, households are saving less, and consumer sentiment has deteriorated days before Tuesday's midterms.

Federal debt

The Wall Street Journal reports that federal debt has reached 100% of GDP.

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