The US economy returned to growth in the third quarter of the year after two consecutive quarters of contraction, giving President Joe Biden a temporary reprieve ten days before the August 8 midterm elections.^her november.

In the July-September quarter, U.S. GDP grew 2.6% year-on-year, according to the Department of Commerce’s first estimates released today. Thus, the world’s largest economy returned to growth for the first time since the beginning of 2022, and the recovery was stronger than initial estimates: GDP is expected to grow by 2.3%.

In the two previous quarters, GDP fell by 1.6% and 0.6%, respectively.

This recovery is good news for President Joe Biden, ten days before the midterm elections, in which Democrats could lose control of Congress. But the risk of recession remains in the coming months. Biden himself spoke in early October of the possibility of a “very slight recession” due to inflation remaining at a 40-year high of 8.2% in September. Indeed, due to inflation, the purchasing power of households decreases, and the “recipe” for combating rising prices is a slowdown in the economy and an increase in interest rates. Consequently, mortgages and consumer goods are now more expensive compared to last year.

The Federal Reserve System (Fed) is gradually raising interest rates, encouraging commercial banks to do the same when issuing loans. He has already made four such raises, and this trend is expected to continue in the next session, next Tuesday and Wednesday.

Source: APE-MPE, AFP.