The conflicting data points from the US that will keep the Federal Reserve on hold

The data from the US on Thursday showed blockbuster GDP growth:

• US Q3 advance GDP +4.9% vs +4.3% expected

And this wasn't too shabby either:

• US September durable goods orders 4.7% versus 1.7% expected

Back to the economic growth data.

In response Fitch ratings, first on the headline GDP result:

• stunningly-strong 4.9% annualised gain in third-quarter GDP
• Economic growth transitioned from resilience to reacceleration this quarter, defying the Federal Reserve’s aggressive tightening cycle and tighter financial conditions
• suggests that the Fed needs to do even more

And then on the detail re inflation, the Core PCE down to 2.4% :

• just as notable was the slowdown in core PCE

Fitch concludes, on balance:

• Under those circumstances, the Fed can afford to stay on the sidelines

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ps. Core PCE is an FOMC benchmark inflation indicator