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The US economy grew a stellar 4.9% from July through September, driven by robust consumer spending despite the Federal Reserve’s efforts to slow the economy with high-interest rates.

Thursday’s estimate from the Commerce Department showed that the nation’s gross domestic product — the broadest gauge of the economy’s total output of goods and services — was the fastest quarterly advance in nearly two years.

Last quarters robust GDP growth was far above the 2.1% growth rate in the April-to-June quarter.

Despite inflation, the Commerce Department reported that Americans drove the economy by stepping up their spending, splashing out on everything from movies and Taylor Swift concert tickets to restaurant meals.

However, the economy is expected to experience a steady slowdown in the current October-to-December quarter and into early 2024, especially if the Fed implements another interest rate hike and the housing market remains sluggish.

A recent survey by CNBC-Morning Consult showed just that, with more than three-quarters of respondents, 76%, saying they plan to be frugal through the holidays.

Of the 4,403 US adults polled last month, 62% said they plan on budgeting sometimes or more often in the upcoming six months, CNBC found — during retailers all-important holiday shopping season.

On top of sky-high borrowing rates currently plaguing the housing market — the average long-term rate hit 8% for the first time since 2000 last week, per Mortgage Daily News — some 30 million Americans began repaying student loans, which could slow their ability to spend in the fourth quarter.

Those loan repayments had been suspended since the pandemic first struck three years ago.

Brisk consumer spending typically leads companies those that sell physical goods as well as those, like restaurants and entertainment venues, in the economys vast service sector to raise prices, thereby fueling inflation.

Fed officials have acknowledged the pickup in growth, which could potentially undercut their efforts to fight inflation, which rose 3.7% in September.

Last month’s advance was more than economists expected — and a sharp decline from June 2022’s four-decade high of 9.1% — though it’s still well above central bankers’ 2% goal.

A blockbuster September employment report revealed that the US economy added a whopping 336,000 jobs last month an unexpected surge that contradicts the notion the Fed may tamp down its aggressive tightening regime.

However, it still remains unclear whether the latest GDP figure will have much impact on the Fed’s upcoming Nov. 1 decision on interest rates, which officials have suggested may increase one more time ahead of the new year.

Fed Chari Jerome Powell said in a discussion at the Economic Club of New York last week: “We certainly have a very resilient economy on our hands.”

“Many forecasts called for the US economy to be in recession this year. Not only has that not happened; growth is now running for this year above its longer-run trend. So thats been a surprise,” he added.

If those trends continue, it could allow the Fed to achieve a highly sought-after soft landing, in which the central bank would manage to slow inflation to its 2% target without causing a deep recession.

At the same time, Powell has suggested that if the economy keeps growing robustly, the Fed might have to raise rates further. Its benchmark short-term rate — which affects the rates on many consumer and business loans — currently sits between 5.25% and 5.5%, a 22-year high.

Last month, Fed officials unanimously decided to hold the record-high rate steady for the second time in six policy meetings so far this year.

“Additional evidence of persistently above-trend growth could put further progress on inflation at risk and could warrant further tightening of monetary policy,” Powell said last week.

With Post wires.

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Sports

Cal Raleigh Home Run Watch: After hitting No. 58 on Sunday, will the Big Dumper reach 60?

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Cal Raleigh Home Run Watch: After hitting No. 58 on Sunday, will the Big Dumper reach 60?

The Big Dumper just left the yard again!

In what has become a regular occurrence during Cal Raleigh‘s incredible 2025 season, the Seattle Mariners catcher added another home run to his 2025 total on Saturday — passing another MLB legend in the process — followed by one more on Sunday night.

Raleigh has already surpassed the record for home runs by a catcher and by a switch-hitter and set a Mariners franchise record, and who could forget his Home Run Derby triumph earlier this summer?

What record could Raleigh set next, how many home runs will he finish with and just how impressive is his season? We’ve got it all covered.

Raleigh must-reads: Raleigh’s road to homer history | Surprising 50-HR seasons | Best power half-seasons in MLB history


Raleigh’s current pace

Raleigh is now at 58 home runs and on pace for 60 with seven games left.

The American League record is 62, set by Aaron Judge in 2022, and there have been only nine 60-home run seasons in MLB history.


Who Raleigh passed with his latest home run

With his 58th home run on Sunday night, Raleigh moved past Luis Gonzalez and Alex Rodriguez on the all-time single-season home run list. With No. 57 the night before, Raleigh surpassed Ken Griffey Jr.’s Mariners franchise record of 56 — a number Griffey reached twice — in the 1997 and 1998 seasons.

Raleigh has joined Griffey as the only Mariners with 50 home runs (or even 45) in a season. Raleigh is also the first Seattle slugger with 40 homers in a season since Nelson Cruz in 2016.


Who Raleigh can catch with his next home run

After passing Mickey Mantle, Griffey and A-Rod with his most recent blasts, the next big question for Raleigh is if he can get to No. 60. But he is already in rare company as No. 59 would move him past Jimmie Foxx and Hank Greenberg on the all-time single-season home run list.


Raleigh’s 5 most impressive feats of 2025

Most home runs in a season by a switch-hitter

With his 55th home run, Raleigh knocked Mickey Mantle, who hit 54 in 1961, from the top spot. Breaking Salvador Perez‘s record of 48 home runs by a primary catcher understandably got a lot of attention, but beating Mantle’s mark is arguably more impressive given how long the record stood and the Hall of Famer’s stature.

One of the best months ever for a catcher

In May, Raleigh hit .304/.430/.739 with 12 home runs and 26 RBIs. Only four catchers have hit more home runs in a calendar month and only eight with at least 100 plate appearances produced a higher slugging percentage. Raleigh was almost as good in June, hitting .300/.398/.690 with 11 home runs and 27 RBIs, giving him two-month totals of .302/.414/.714 with 23 home runs and 53 RBIs. In one blazing 24-game stretch from May 12 to June 7, Raleigh hit .319 with 14 home runs.

Reaching 100 runs and 100 RBIs

Raleigh is sitting on 107 runs scored while leading the American League with 121 RBIs. Only eight other primary catchers have reached 100 in both categories in the same season — Mike Piazza did it twice, in 1997 and 1999, and he and Ivan Rodriguez were the last catchers to do it in ’99. Of the other catchers, seven are in the Hall of Fame (Piazza, Rodriguez, Mickey Cochrane, Yogi Berra, Roy Campanella, Johnny Bench and Carlton Fisk). The lone exception is Darrell Porter, who reached the milestone with the Royals in 1979.

Tying Ken Griffey Jr.’s club record for home runs

Griffey hit 56 home runs for the Mariners in 1997 and 1998, leading the AL both seasons and winning the MVP Award in 1997 (he and Ichiro Suzuki in 2001 are Seattle’s two MVP winners). Griffey had the advantage of playing in the cozy confines of the Kingdome in those years, although his home/road splits were fairly even. Raleigh, however, has had to play in a tough park to hit in, with 30 of his 56 home runs coming on the road, where his OPS is about 100 points higher. That marks only the 19th time a player has reached 30 road homers (by contrast, 30 homers at home has been accomplished 37 times).

An outside shot at most total bases by a catcher

With 337 total bases, Raleigh’s 2025 campaign is already one of only 20 catcher seasons with 300 total bases (yes, time at DH has helped him here). The record is 355, shared by Piazza in 1997 and Bench in 1970 (both played 150-plus games in those seasons). Raleigh would need a strong finish to get there but could at least move into third place ahead of Perez’s 337 total bases in 2021. Not counted in Raleigh’s total bases: his 14 stolen bases!

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UK to push peace plan at UN summit after recognising Palestinian state – but Netanyahu says Palestine ‘will not happen’

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UK to push peace plan at UN summit after recognising Palestinian state - but Netanyahu says Palestine 'will not happen'

The UK is set to push for a peace plan for the Middle East at the UN General Assembly after recognising the state of Palestine.

Foreign Secretary Yvette Cooper is expected to use the summit to address civilian suffering in war-torn Gaza and aim to strengthen “the international consensus on our pathway for peace in the Middle East”.

She will hold bilateral meetings to advance elements of the peace plan, including security measures to ensure Hamas has no role in the future governance of Gaza, according to the Foreign Office.

Prime Minister Sir Keir Starmer, who won’t attend the summit, announced on Sunday that the UK recognises Palestine as an independent state, to “revive the hope of peace for the Palestinians and Israelis, and a two-state solution”.

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‘Ordinary people deserve to live in peace’

It is a significant moment in the history of Britain’s involvement in the region, and comes as the number of people killed during the Gaza conflict continues to rise and conditions for the people trapped become even more desperate.

Australia, Canada and Portugal made similar announcements, with France expected to follow suit at the UN on Monday.

The move was met with fierce backlash by Israel, with Prime Minister Benjamin Netanyahu saying it was “absurd” and a “huge reward to terrorism”. He also vowed that a Palestinian state “will not happen”.

More on War In Gaza

Read more: What recognising a Palestinian state actually means

Flags of Palestine and Israel are projected onto the Eiffel Tower. Pic: AP/Christophe Ena
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Flags of Palestine and Israel are projected onto the Eiffel Tower. Pic: AP/Christophe Ena

Separately, an Israeli official said the “full or partial annexation of the West Bank” is now “an option under consideration in response” to the move.

US President Donald Trump also addressed the coordinated recognition of the state of Palestine by the UK, Australia, Canada and Portugal, saying “I’m not in that camp” because recognising a Palestinian state was “rewarding Hamas”.

The families of hostages held in Gaza called it a “betrayal of humanity and a move that rewards Hamas while 48 hostages remain in captivity”.

A tent camp for displaced Palestinians stretches along the Muwasi, in southern Gaza. Pic: AP/Jehad Alshrafi
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A tent camp for displaced Palestinians stretches along the Muwasi, in southern Gaza. Pic: AP/Jehad Alshrafi

Palestinian President Mahmoud Abbas said the recognition of the state of Palestine would allow it to “live side by side with the State of Israel in security, peace, and good neighbourliness”.

Senior Hamas official Mahmoud Mardawi reportedly celebrated the move as a victory for “the justice of our cause”.

But Sir Keir was clear to emphasise that recognition of Palestine was “not a reward for Hamas”, saying the terror group “can have no future, no role in government, no role in security” in a future state and confirming plans to ratchet up sanctions on Hamas “in the coming weeks”.

“Our call for a genuine two-state solution is the exact opposite of their hateful vision,” he added.

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Gazans react after Starmer recognises Palestinian statehood

The prime minister also repeated his criticism of Israel, which for nearly two years has waged war on the densely populated Gaza Strip.

“The Israeli government’s relentless and increasing bombardment of Gaza, the offensive of recent weeks, the starvation and devastation are utterly intolerable,” he said.

Read more from Sky News:
Why Palestine move matters in the Middle East
Palestinian minister hails ‘courageous step’
Gaza City doctors say hospital at breaking point

Destroyed buildings in Gaza, as seen from Israeli side of the border. Pic: Reuters
Image:
Destroyed buildings in Gaza, as seen from Israeli side of the border. Pic: Reuters

The number of people killed in Gaza since the IDF launched its offensive following the 7 October attacks has now risen above 65,000, according to Hamas-run health authorities.

“This death and destruction horrifies all of us. It must end,” Sir Keir said.

An updated map of Israel and Palestine on the Foreign, Commonwealth & Development Office website
Image:
An updated map of Israel and Palestine on the Foreign, Commonwealth & Development Office website

In recognising Palestine as a state, the UK does so based on 1967 borders to be finalised as part of future negotiations. It would be led by a “reformed Palestinian Authority”.

The UK also acknowledges “all legal rights and obligations of statehood” for Palestine.

An updated map on the UK’s Foreign, Commonwealth & Development Office website now has the West Bank and Gaza labelled as ‘Palestine’ rather than the ‘Occupied Palestinian Territories’. This change has been rolled out across the website.

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Sports

Raleigh’s 58th HR fuels Mariners’ sweep of Astros

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Raleigh's 58th HR fuels Mariners' sweep of Astros

HOUSTON — Seattle Mariners star Cal Raleigh hit his MLB-leading 58th home run on Sunday night, a two-run shot in the second inning against the Houston Astros.

The Mariners were up 5-0 after a grand slam by J.P. Crawford in the second when Raleigh, who was batting left-handed, connected off Jason Alexander for his home run to right field to extend the lead.

The shot came a night after Raleigh passed Ken Griffey Jr. for the franchise’s single-season home run record with his 57th. Griffey hit 56 in 1997 and in 1998.

Raleigh also has surpassed Mickey Mantle‘s MLB record of 54 home runs by a switch-hitter that had stood since 1961. And Raleigh has set the MLB record for homers by a catcher this season, eclipsing the 48 hit by Salvador Perez in 2021.

Raleigh is five home runs ahead of Los Angeles Dodgers star Shohei Ohtani and Philadelphia Phillies slugger Kyle Schwarber, who are tied for second place with 53 apiece.

The Mariners won 7-3 to complete a three-game sweep that gave them a three-game lead in the American League West over the Astros with six remaining.

Seattle, which has won four straight and 14 of 15, holds the second AL playoff seed by two games over AL Central-leading Detroit, which has dropped six in a row. The Mariners, looking to win the AL West for the first time since 2001, finished 8-5 against the Astros this season.

The Associated Press contributed to this report.

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