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U.S. economy grew 2.8% last quarter, powered by consumer spending
The U.S. economy grew at a 2.8% annual pace last quarter as consumers continued to open their wallets despite elevated interest rates.
Forecasters expected the country’s gross domestic product — the total value of goods and services produced in the U.S. — to come in at 2.6% in the three-month period ended in September, according to a survey of economists by the data firm FactSet.
The American economy, the world’s biggest, has shown surprising resilience in the face of sharply higher borrowing rates as the Federal Reserve tightened monetary policy in a bid to tame inflation. Despite widespread predictions that the economy would succumb to a recession, however, it has kept growing, with hiring and consumer spending holding steady.
Consumer confidence soared in October, reaching its highest level since January 2024, according to the Conference Board. That could signal that U.S. households will continue spending, a key to economic growth.
“The percent of consumers expecting a recession in the next 12 months fell to its lowest since the question was first posed in July 2022, with just under two-thirds of respondents believing that a recession is either somewhat or very likely in the next 12 months,” noted analysts at PNC Financial Services Group in a report.
contributed to this report.
CBS News
Democrats and Republicans in tight races seize on comments stemming from “garbage” joke at Trump rally
In the home stretch of the 2024 election, after a racist comment at a Trump rally comparing Puerto Rico to garbage, both parties are trying to fan political flames to burn the opposition on congressional races, in addition to the presidential contest.
In the hours after comedian Tony Hinchcliffe told a racist joke about Puerto Ricans at a rally for former President Donald Trump at Madison Square Garden on Sunday, Democrats circulated a list of competitive U.S. House races in which people of Puerto Rican descent make up large percentages of the electorate.
Meanwhile, on Wednesday, Republican operatives have tried to seize on a gaffe by President Biden, in which he used the term “garbage” to describe the Trump supporter who made the racist joke. But Republicans have accused Mr. Biden of instead referring to all Trump supporters as “garbage” and are trying to tie Democratic congressional candidates to their accusation regarding the president’s words.
The dual controversies are being amplified and shifting the closing messages in the final few days before Election Day, amid highly competitive contests for control of the Senate and House.
According to a memo obtained by CBS News from Democratic campaign operatives, more than 10% of registered voters in Pennsylvania’s competitive 7th District House race are people of Puerto Rican descent. The memo also said at least 4% of registered voters have ties to Puerto Rico in a three competitive House races in New York, two more in Pennsylvania and at least one each in Florida and Connecticut.
Leaning into the Madison Square Garden rally controversy, Rep. Susie Lee, a Pennsylvania Democrat defending the battleground 7th Congressional District in and around Allentown, has already raised the issue. Speaking to the Philadelphia Inquirer, “I am hearing more on this than I’ve heard on almost any other issue this entire campaign season.”
On Long Island, in New York’s competitive 4th District House race, Democratic candidate Laura Gillen amplified the firestorm over the racist joke Tuesday. Rep. Nydia Valazquez, a New York Democrat who was born in Puerto Rico, who was speaking at a Gillen campaign event for small businesses, referenced the controversy and joke.
Fighting to hold a competitive seat in Western Connecticut, Democratic Rep. Jahanna Hayes posted on social media, “Every person, not just the Puerto Rican community, should be saddened and upset by the behavior of the Trump rally at MSG.”
Republicans meanwhile are seeking to magnify President Biden’s potential gaffe from Tuesday.
“The President of the United States just smeared half of the country – House Democrats can speak up now to disagree, or their silence will say everything voters need to know,” GOP North Carolina Rep. Richard Hudson, who chairs the National Republican Congressional Committee, said in a statement.
Rep. Marc Molinaro, a first-term Republican who’s trying to defend his New York 19th Congressional District seat, posted on social media about Biden’s statement. Molinaro wrote in part, “Biden says if you don’t support Kamala Harris, you are garbage.”
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Democrats and Republicans in tight races seize on comments stemming from “garbage” joke at Trump rally
Shawn Fagan tapped to lead the Rochester Downtown Alliance
Minneapolis Market mass shooting among 5 homicides in federal RICO charges against Lows gang