“A return to economic growth in the third quarter obscures continued signs of a slowdown in components that provide a cleaner signal of momentum… The Fed is likely to view the weaker components as intended consequences of its tighter monetary policy, and not as reasons to back off the tightening cycle just yet.”Inflation-adjusted business investment advanced 3.7%, reflecting a robust increase in outlays for equipment and intellectual property products.
Thursday’s data did nothing to dissuade traders from expecting Federal Reserve Chair Jerome Powell and his colleagues from boosting interest rates by 75 basis points next week. Futures trading reflects expectations for a half-point increase at the following meeting, in December. Stripping out food and energy, the price index rose 4.5%. Monthly data for September will be released Friday.“The macro-environment indications of a recession are certainly increasing.” — John Greene, chief financial officer of Discover Financial Services, Oct. 25 earnings call