Global Economic Update: US Growth, Inflation Acceleration, and Central Bank Policy

The U.S. economy expanded 3.4% last quarter, driven by consumer and business activity. Meanwhile, the inflation metric targeted by the Federal Reserve accelerated in September. Globally, the European Central Bank left rates unchanged amid surging energy prices and turmoil in France's bond market. In the U.S., jobless claims unexpectedly edged lower to 194,000 for the week through October 24.

The acceleration of inflation puts pressure on central banks, which are actively using monetary policy to manage price increases. Furthermore, the U.S. fiscal year-end debt ratio has reached its highest level since 1946, while geopolitical risks in the Middle East are prompting oil producers to expand overseas storage.