A lot of fresh fire power for Jerome Powell's Federal Reserve:
In a surprising turn of events, the US economy has demonstrated remarkable resilience in the third quarter of 2023. The latest data revision by the Department of Commerce reveals a robust 5.2% growth in Gross Domestic Product (GDP) compared to the previous quarter, surpassing economists' predictions of 5.0%. Dow Jones Newswires' experts initially estimated a 4.9% increase.
This unexpected surge underscores the nation's economic vitality, defying earlier projections. The Personal Consumption Expenditures (PCE) deflator, a key inflation metric favored by the Federal Reserve, rose to 2.8% (preliminary: 2.9%) from the previous quarter's 2.5%.
Meanwhile, the GDP deflator, a comprehensive measure of price changes across all goods and services, reached 3.6% (preliminary: 3.5%), surpassing economists' expectations of 3.5%. This one should worry anyone who is hoping for a fast pivot! With these data the Fed clearly is winning the chicken game between the large central banks.