US Economy Grew Faster than Expected in Q3, But Slower Growth Ahead as Fed Rate Hikes Cool Demand

US GDP grew 4.9% in Q3, faster than expected, driven by consumer spending and inventory accumulation.

Growth accelerated from 2.1% in Q2 but the underlying trend is less dramatic on a year-over-year basis.

Economist expects growth to slow in Q4 and into 2024 as effects of rate hikes play out.

Inflation moderating puts Fed closer to completing its inflation fight.

Fed likely to start cutting rates aggressively in 2024 if inflation beaten and growth slows.