GDP growth rises but prices climb too; interest rates hold steady

GDP growth rises but prices climb too; interest rates hold steady

Consumer prices in the United States rose 3.6% in September, according to the Commerce Department, and that figure is higher than the month before and higher than when President Trump returned to the White House. New GDP figures show the economy grew at an annual rate of 3.4% in July, August and September, up from 2.2% in the previous quarter. Federal Reserve Chairman Kevin Warsh called the growth a good sign, but much of it is being driven by heavy investment in artificial intelligence, including data centers. Hiring has not kept pace, with employers adding just 29,000 jobs in September, and unemployment stands at 4.2%. Wages are growing more slowly than spending, which analysts say is fuelling concern over affordability. The Federal Reserve chose not to raise interest rates this week, but mortgage rates remain high, with the average 30-year home loan around 7.25%. With the midterm elections days away, nearly two-thirds of Americans disapprove of the president's economic handling, and October jobs figures are due next week.