US economic growth figures for three months to September to be released
The advance reading of America’s third-quarter GDP growth releases today. Projections range from economists’ predictions of 2.6% to the New York Fed’s 1.5%.
The figures point to stability in the US economy through President Donald Trump’s first year in office. However, the Federal Reserve is concerned that the growth is not accompanied by rising inflation, which languishes at 1.3%, well below the 2% target.
Trump will soon make his pick for the Fed’s chair. Conservatives want John Taylor, who favours deregulation and hiking interest rates. Yet, the president may be warming to incumbent Janet Yellen, having called her her “terrific” recently and saying the two are “doing very well together”.
The stronger today’s figures, the more Trump may wish to play it safe by staying the course with Yellen or Jerome Powell, another frontrunner. After all, a hawkish turn under Mr Taylor could hurt Republicans in next year’s congressional races if higher rates make costs like home and auto loans more expensive.
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