Strong Third Quarter GDP Growth Masks Emerging Economic Warning Signs
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Third quarter GDP growth was strong at 4.9%, but more recent data suggest economic slowdown ahead.
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Fed officials differ on need for further rate hikes, with some citing emerging signs of household financial stress.
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Atlanta Fed GDPNow model shows projection of just 2.1% GDP growth in fourth quarter.
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Fed watching for evidence of inflation slowing towards 2% target and further cooling in red-hot job market.
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Bond yields rising independently may tighten credit conditions without Fed action, possibly slowing consumer spending.