US economy grew at 3.4% annualized rate in 3rd quarter, government data shows – ABC News – Breaking News, Latest News and Videos

US economy grew at 3.4% annualized rate in 3rd quarter, government data shows  ABC News – Breaking News, Latest News and Videos

The United States economy expanded at an annualized rate of 3.4% over the three months ending in September, according to a government report released on Thursday. The economy has proven resilient by some measures, despite a surge of inflation. Growth in the third quarter amounted to an acceleration from 2.2% annualized GDP growth in the previous quarter, U.S. Commerce Department data showed. The performance in the third quarter also outpaced a 2.5% annualized rate recorded over the first three months of this year. In response to rising prices, a key long-term Treasury rate has jumped in recent months as investors feared price increases would eat away at their returns. The rise in bond yields has pushed up rates for loans like credit cards and mortgages, threatening to worsen the financial crunch.

Still, the economy has proven resilient by some measures. Hiring has continued to grow, albeit at a slower pace, while unemployment has stayed at a low level by historical standards. A surge in spending on artificial intelligence has helped boost the U.S. economy in recent quarters. Many of the nation's largest companies have poured funds into the chips and data centers necessary to operate AI. Speaking at a press conference in Washington, D.C., on Wednesday, Fed Chair Kevin Warsh voiced optimism about U.S. economic performance, even as he acknowledged