U.S. Economy Defies Recession Fears Amid Interest Rate Cuts

Driven by strong consumer spending, the U.S. economy grew at a 2.6% annual pace from July through September, according to predictions by economic forecasters. Despite high interest rates, the economy remains resilient. Job growth has slowed, and the Federal Reserve is expected to continue cutting rates in response.

Despite the pressure of persistent high interest rates, the U.S. economy, buoyed by consumer spending, likely expanded robustly from July to September. The Commerce Department is expected to announce a 2.6% increase in GDP, suggesting the economy remains strong in the presidential race's final stretch.

Despite previous recession predictions, the U.S. economy has shown resilience with continued growth. However, the job market's momentum has weakened, with employment growth slowing compared to recent years. The Labor Department anticipates a tempered job increase in October, influenced by external factors.

The Federal Reserve’s recent significant rate cut underscores concerns over the slowing job market and its inflation-fighting progress. With expectations of further cuts, borrowing costs for consumers and businesses could decrease. Inflation has eased but remains a key issue in the political arena as election campaigns unfold.

(With inputs from agencies.)