Dow sinks after the US economy grew much faster than previously thought in the third quarter
By Chris Isidore and Alicia Wallace, CNN
Updated 4:35 PM EST, Thu December 22, 2022
Excerpt below.
New York CNN — The Dow sank as America’s economy grew much faster than previously thought in the third quarter, a sign that the Federal Reserve’s battle to cool the economy to fight inflation is having only a limited impact.
The Commerce Department’s final reading Thursday morning showed gross domestic product, the broadest measure of the US economy, grew at an annual pace of 3.2% between July and September. That was above the 2.9% estimate from a month ago. Economists surveyed by Refinitiv had expected GDP to stay unchanged from its previous reading.
The Fed has been raising interest rates throughout the year to cool demand for goods and services and reduce inflation. Economists have been worried for quite some time that the Fed’s actions could tip the US economy into recession next year.
“The reality of the Federal Reserve’s determination is sinking in,” said David Kotok, chairman and chief investment officer at Cumberland Advisors, referring to efforts to get the economy back on a path towards 2% inflation. “”I don’t see how a recession is avoidable unless the Federal Reserve changes its policy.”
Read the full article at CNN: https://www.cnn.com/2022/12/22/economy/gdp-third-quarter-final/index.html
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