U.S. economic growth braked sharply in the third quarter as businesses cut back on restocking warehouses to work off an inventory glut, but solid domestic demand could encourage the Federal Reserve to raise interest rates in December.
Gross domestic product increased at a 1.5 percent annual rate after expanding at a 3.9 percent clip in the second quarter, the Commerce Department said on Thursday.
The inventory drag, however, is likely to be temporary and economists expect growth to pick up in the fourth quarter given strong domestic fundamentals.
The Fed on Wednesday described the economy as expanding at a “moderate” pace and put a December rate hike on the table with a direct reference to its next policy meeting. The U.S. central bank has kept benchmark overnight interest rates near zero since December 2008.
First figures coming out of Washington are suspect since this administration is known for their lying. Secondly what is not mentioned is that real unemployment so high and that tells me that people can not afford the products made so the inventories are higher than normal which means even more people will have to be laid off.
The economy is not booming just the policies of the federal government as well as state governments which have imposed even more taxes,regulations, and fees on business and citizens. It is now said the median income is now below $30,000 and real earning power has gone back to many years in the past. The U.S. is spiraling into a third world nation.
In Washington in the dead of the night the debt limit has been raised once again with the cooperation of Boehner. This administration has no end to funding their pet projects as well as throw money at enemies they like to call friends.