GDP and inflation figures arrive together at 8:30 a.m. Eastern time. Strong growth and persistent price pressures could strengthen the case for an interest-rate increase in December.
The Fed held off on a rate hike. Today’s GDP and inflation reports could make waiting harder.
In short
Upcoming gross domestic product and inflation figures could complicate the Federal Reserve's decision to pause interest rate increases. Both vital economic reports are scheduled for release together at 8:30 a.m. Eastern time. If the metrics reflect solid growth paired with elevated price pressures, central bank officials will find it increasingly difficult to avoid action. Such an outcome would significantly reinforce the argument for implementing a rate hike in December.
Key points
- Strong upcoming economic data could force central bank policymakers to abandon their curr…: Strong upcoming economic data could force central bank policymakers to abandon their current wait-and-see approach.
- Evidence of persistent inflation alongside solid growth will build momentum for an intere…: Evidence of persistent inflation alongside solid growth will build momentum for an interest rate hike in December.
- The dual release of gross domestic product and inflation reports will test the durability…: The dual release of gross domestic product and inflation reports will test the durability of the central bank pause.