The economy of the United States slowed down in third quarter of the current fiscal year as was reported by the Reuters previously but now the reporters state that despite the slowing down, the pace was strong enough to enable the growth to be right on track.
According to the Reuters, the pace was enough to be able to hit the target of 3 percent as was set by the administration of the President Trump despite the momentum being moderated further in the beginning of the fourth quarter of the current fiscal year
According to the commerce Department of the United States, the Gross Domestic Product of the country witnessed an increase at an annualized rate of 3.5 percent.
The announcement was made by the department on Wednesday and is as per the estimation of the GDP growth for the third quarter of the current fiscal year.
The GDP for the third quarter which was revised reflected a inventory accumulation to be at a faster rate along with increased business spending in the purchasing of the equipment that what was initially thought to be offset by the revisions which were downward to spending and exports by the consumers.
The growth rate of the economy in the quarter of April to June was 4.2 percent.
The Federal Reserve is on course because of the strong growth that the last quarter witnessed. This course will be to increase the rate of interest for the fourth time in the current fiscal year in the month of December.
On Wednesday, the Chairman of Fed, Jerome Powell stated near the target of 2 percent by the central bank of the United States, he was expecting solid growth along with low unemployment and inflation.
Apparently Powell was signalling that the monetary policy tightening campaign by Fed was nearing an end.
Source: Reuters, LiveMint