The US economy is experiencing a steady growth despite the leading economic index falling 0.8% in October and decreasing for the 19th consecutive month. Consumer spending has been increasing steadily, offsetting the negative effects of high inflation and rising interest rates. The US grew at an annualized rate of 4.9% in the third quarter, which is not a sign of an impending economic meltdown. However, with interest rates at their highest level in years, maintaining momentum will be challenging for the economy.

The Federal Reserve raised a key short-term interest rate to curb inflation, but higher borrowing costs always slow down the economy if not causing an outright recession. Looking ahead, economists predict that increased inflation, high interest rates, and reduced consumer spending due to pandemic savings drain and mandatory student loan repayments will push the US economy into a very short recession.

The market reaction to this news was positive as the Dow Jones Industrial Average DJIA and S&P 500 SPX rose in Monday’s trading session.

By Editor

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