The U.S. economy expanded in the third quarter at the fastest rate since 2011, according to the final estimate from the Commerce Department released today. Q3 GDP came in at a better-than-expected 4.1%, driven by strong consumer spending. Previous estimates were for 3.6%. growth in the third quarter.
Stocks finished higher on the news, with the Dow and S&P 500 hitting fresh record highs and managing the first weekly gain in three weeks. The Dow ended the week up 3%, the S&P 500 climbed 2.5% for the week, and the Nasdaq also rallied, closing up 2.6 for the week.
The Federal Reserve reported its balance sheet has topped $4 trillion for the first time ever. The Fed's $85 billion a-month bond purchase program was a significant contributor to the inflated tally. Next month, the central bank will begin reducing those purchases by $10 billion dollars a month. Some economists have voiced concern about how the markets will react when the Fed takes further steps to shrink that massive balanceRead More »from GDP revised up to 4.1%; Stocks finish higher; Blackberry misses, Fed’s balance sheet tops $4T