China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
Oil Prices Rise as US-Iran Tensions Threaten Strait of Hormuz Oil Shipments 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
Strong Economic Growth Anticipated
The U.S. economy is expected to sustain a solid growth pace in the third quarter of 2024, bolstered by decreasing inflation and robust wage increases fueling consumer spending. This advance comes just before the critical presidential election on November 5, where Vice President Kamala Harris faces former President Donald Trump in a highly competitive race.
Consumer Concerns Amid Growth
Despite economic growth, many Americans are grappling with high food and housing costs. Polls indicate that voters are increasingly favoring Trump as the better steward of the economy. The economy has remained resilient, defying recession predictions and outperforming many global counterparts, despite the Federal Reserve's substantial interest rate hikes totaling 5.25 percentage points in 2022 and 2023.
Projected GDP Growth
According to a Reuters survey, the GDP is likely to have increased at an annualized rate of 3.0% in Q3, maintaining the same growth rate as Q2. While recent data showed a rise in the goods trade deficit, which led the Atlanta Fed to revise its GDP estimate down to 2.8%, growth remains well above the Fed's non-inflationary benchmark of approximately 1.8%.
Positive Economic Indicators
With inflation nearing the Fed's target of 2%, the central bank is easing its policies, evidenced by last month's significant half-percentage-point rate cut. Additionally, consumer spending, a critical driver of economic activity, is projected to grow at a rate exceeding 3.5%, up from 2.8% in the previous quarter. While concerns persist regarding the distribution of growth, particularly benefiting middle- and upper-income households, business investment and government spending are also contributing to this economic expansion.
