The bigger than expected 2.9% annualised gain in third-quarter GDP confirms that the economic recovery has regained some of the momentum lost within the last year. As such, this leaves the Fed firmly on track to raise interest rates in December and a hike at next week’s FOMC meeting isn’t entirely out of the question. Unfortunately, 0.9% points of that gain was due to a one-off surge in soybean exports, which we already know will be reversed in the fourth quarter.
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