US reports stronger Q2 growth, inflation steady

The United States reported stronger-than-previously-estimated second-quarter GDP growth of 2.2 percent on Wednesday, with inflation holding steady and private payrolls rising more than expected, providing a boost to President Donald Trump ahead of November's midterm elections. The Commerce Department revised Q2 growth up by 0.7 percentage points, driven by consumer spending, investment, and exports, with analysts attributing much of the gain to the artificial intelligence boom. The Fed's preferred inflation gauge stood at 3.4 percent year-on-year in August, unchanged from July, while ADP reported private sector hiring rebounded to 90,000 jobs in September. The Fed raised interest rates earlier this month for the first time in three years to combat inflation, which remains above its two-percent target. Core PCE inflation was 3.0 percent, with upside risks from rising energy prices linked to the Iran war and Trump's tariffs.