US Economy Showcases Robust Growth Amid Persistent Inflation

The US economy expanded by 4.3% in the third quarter, its fastest pace in two years, driven by consumer and government spending alongside export growth. Inflation, however, remains above the Federal Reserve's desired levels. Employment figures reveal a slowdown, with job creation dipping significantly since spring.

The US economy experienced a significant surge with a 4.3% annual growth rate in the third quarter, outperforming expectations and marking the most rapid expansion in two years. Consumer spending, government investment, and robust export activity drove this growth, according to the Commerce Department.

Despite this positive development, inflation continues to exceed the Federal Reserve's target. The Fed's preferred metric, the personal consumption expenditures (PCE) index, indicated a 2.8% rise, while core PCE inflation rose to 2.9% after volatile elements like food and energy were excluded.

Though the US labor market generated 64,000 jobs in November, it shed 105,000 in October, pushing the unemployment rate to 4.6%. The hiring pace has dropped significantly, attributed to uncertainties surrounding President Trump's tariffs and the prolonged impact of higher interest rates.

(With inputs from agencies.)