The conflicting data points from the US that will keep the Federal Reserve on hold

<p>The data from the US on Thursday showed blockbuster GDP growth:</p><ul><li><a href="https://www.forexlive.com/news/us-q3-advance-gdp-49-vs-43-expected-20231026/" target="_self">US Q3 advance GDP +4.9% vs +4.3% expected</a></li></ul><p>And this wasn't too shabby either:</p><ul><li><a href="https://www.forexlive.com/news/us-september-durable-goods-orders-47-versus-17-expected-20231026/" target="_self">US September durable goods orders 4.7% versus 1.7% expected</a></li></ul><p>Back to the economic growth data. </p><p>In response Fitch ratings, first on the headline GDP result:</p><ul><li>stunningly-strong 4.9% annualised gain in third-quarter GDP</li><li>Economic growth transitioned from resilience to reacceleration this quarter, defying the Federal Reserve’s aggressive tightening cycle and tighter financial conditions</li><li> suggests that the Fed needs to do even more</li></ul><p>And then on the detail re inflation, the Core PCE down to 2.4% :</p><ul><li>just as notable was the slowdown in core PCE</li></ul><p>Fitch concludes, on balance:</p><ul><li>Under those circumstances, the Fed can afford to stay on the sidelines</li></ul><p>—</p><p>ps. Core PCE is an FOMC benchmark inflation indicator</p>

This article was written by Eamonn Sheridan at www.forexlive.com.