US Economic Growth Defies Expectations Amidst Inflation Concerns

The US economy grew at a rate of 2.8% from July to September, driven by consumer spending and exports. Despite stable growth, voters re-elected Donald Trump with hopes of an economic overhaul. Inflation remains a concern, prompting rate cuts amidst planned import taxes by Trump.

The US economy expanded at a 2.8% annual rate between July and September, bolstered by consumer spending and export surges, according to a government report on Wednesday. This leaves unchanged the initial estimate of third-quarter growth from the Commerce Department. However, growth has decelerated from the 3% observed in the previous quarter.

Despite consistent growth, American voters, frustrated with persistent high prices, voted to return Donald Trump to the White House. His election comes with Republican support in Congress to revise national economic strategies. Notably, consumer spending, representing 70% of the US economy, rose by 3.5% last quarter, while exports climbed by 7.5%.

As Trump prepares to take office, he inherits a robust economy characterized by a 4.1% unemployment rate and reduced inflation, now at 2.6%. The Federal Reserve, pleased with the inflation decrease, has cut interest rates twice, with further cuts anticipated. Trump's plans to impose import taxes could pose inflationary pressures, a move largely criticized by mainstream economists.

(With inputs from agencies.)