U.S. Economy Grows at Fastest Pace Since 2021 Despite High Inflation and Rising Rates

The U.S. economy grew at an annual rate of 4.9% in the third quarter, the fastest growth rate since late 2021.

Consumer spending has helped drive economic growth, even as interest rates rise. People are spending on travel, dining out, entertainment, and more.

Inflation has come down from its peak but remains elevated. High prices, especially for gasoline, are souring Americans' views of the economy.

Oil and natural gas exports have increased, with the U.S. replacing Russia as a major supplier to Europe and Asia. Domestic oil production hit an all-time high.

Economic growth is expected to moderate in coming months. But the economy has proven resilient despite high interest rates and inflation.