The U.S. economy expanded at a faster annualised pace than forecasters expected last quarter, as resilient consumer spending and steady business investment offset the drag from higher borrowing costs. The figures point to an economy that has absorbed tighter policy better than many had feared.
Stronger growth is a double-edged read for markets: it supports corporate earnings but can delay the rate relief investors are counting on if it keeps price pressures alive. The composition — how much came from consumption versus inventories — matters for whether the pace can be sustained.
Why it matters: Growth this firm complicates the case for early rate cuts, and bonds and rate-sensitive equities will trade on exactly that tension.
Written by AI from the linked reports below — original text, not copied from any source. Informational only, not investment advice; verify against the originals.