The Daily Times Newspaper

US Economic Growth Down In The Third Quarter

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US economic Growth down in the Third Quarter. The US economy grew by 3.5 percent in the third quarter on an annual basis, according to a preliminary estimate from the US Department of Commerce.

 

A quarter earlier was still a plus of 4.2 percent.

In the midst of all trade tensions, economists expected that the economy of the United States would grow less vigorously than in the previous period.

They calculated in average on a rise of the US gross domestic product (GDP) by 3.3 percent.

Aided by the tax cuts of President Donald Trump, the most vigorous growth in the world’s largest economy since 2014 was in the second quarter.

Consumers’ spending, which accounts for the lion’s share of the economy, increased, even more, this time.

The figures show a plus of 4 percent here compared to 3.8 percent in the second quarter.

According to analysts, the American economy ultimately remains solid.

Authorities do not see any logic in the figures for the Federal Reserve to stop increasing the interest rate step by step.

The Federal Reserve is assumed to raise interest rates once more this year.

In September, the interest was also boosted, despite criticism of Trump.

The president believes that the Federal Reserve endangers the American economy.

Interest rate raises to ensure that borrowing money becomes more expensive and that puts a brake on growth.

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