The US economy is seeing a 1.2% recovery, but inflation persists

According to data from the Bureau of Economic Statistics (BEA), the United States recorded progress in its economy during the third quarter of the year in GDP by 1.2%, which represents a recovery in its growth.

The report stated that the annual growth rate reached 4.9%, which leaves behind the slowdown observed by the world’s leading economy in the second quarter, when growth on a quarterly basis was only half a point, at an annual rate of 2.1%.

Strong household consumption, coupled with rising exports and increased spending on private and public investment, led to the largest growth between July and September, according to data published on Thursday.

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The US economy is seeing a 1.2% recovery, but inflation persists

These data are known a few days before the Federal Reserve holds a new monetary policy meeting after which it can decide on a new increase in interest rates, given that the economy does not show symptoms of a slowdown, quite the opposite, and inflation does not appear to eventually decline to the required extent.

The latest inflation data put this rate at 3.7% in September, the same as the previous month.

Federal Reserve Chairman Jerome Powell warned last week in a speech in New York that interest rates should remain high because there is still a way for inflation to reach its 2% target.

Interest rates now range between 5.25% and 5.5%, their highest level since 2001.

With information from EFE.

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