Economic Pulse: U.S. Growth Accelerates Amid Election Heat

The U.S. economy likely sustained a strong growth rate in the third quarter, fueled by easing inflation and robust wage gains, ahead of a crucial presidential election. Despite high interest rates, the economy's resilience could influence the Fed's policy path. Consumer and business spending remain powerful growth drivers.

The U.S. economy is showing signs of robust growth in the third quarter, despite looming pocketbook issues associated with the upcoming presidential election. As inflation eases and wages rise, consumer spending continues to drive economic activity.

According to the Commerce Department, the upcoming report on third-quarter GDP will be available just ahead of the Nov. 5 elections, where voters will evaluate Vice President Kamala Harris and Former President Donald Trump on economic stewardship. Recent polls indicate a tight race, underlining the economy as a principal election issue.

Against the backdrop of rising wages and improved productivity, economists are revising their growth estimates, suggesting the economy's resilience. While lower-income households find relief in cooled inflation, businesses push forward with investments, injecting further impetus into economic expansion.

(With inputs from agencies.)