Joe Biden is taking a victory lap after the latest blowout GDP report and says the much-feared recession is canceled, but Wall Street is dubious

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Americans continued their revenge spending in the third quarter despite persistent inflation and rising interest rates, helping the U.S. economy grow at its fastest pace since late 2021.

Real gross domestic product (GDP) grew at a 4.9% annual rate last quarter, according to the so-called advance estimate that the Bureau of Labor Statistics (BLS) reported Thursday. That’s up from just 2.1% in the second quarter. The latest figure was buoyed by rising federal and state government spending, increased exports, and inventory investments from businesses, the BLS explained.

The Biden administration was quick to celebrate the surge in U.S. economic growth after years of consistent recession predictions from Wall Street. Ever since inflation surged to a four-decade high of over 9% in June 2022, a chorus of experts has repeatedly warned that the Federal Reserve may need to hike interest rates until the economy slips into recession if it truly wants to restore price stability for consumers. But President Biden rebuked that thinking on Thursday.

By Will Daniel.

Full story at Yahoo News