U.S. Q3 GDP growth slows slightly to 2.8%, Fed rate cut pace not expected to change

On October 30th, U.S. economic growth slowed slightly in the second quarter, although consumer spending remained strong. This economic report comes six days before a presidential election in which the economy could be the defining issue. The stakes couldn't be higher for both candidates. Economists tend to think that Vice Harris would do a better job of controlling deficits and inflation; voters tend to give Trump better marks on the economy. Torsten Slok, chief economist at Apollo Global Management, said the economy is doing very well, thanks in part to the AI boom and government spending through programs like the Inflation Reduction Act. On top of that, many homeowners locked in favorable mortgage rates when borrowing costs were low, making them less sensitive to the high rates of the past few years.The GDP data should not change the Fed's overall direction. The Fed cut rates last month and is expected to continue to do so.