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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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Leafs finish off Senators for spot in East semifinals

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Leafs finish off Senators for spot in East semifinals

OTTAWA, Ontario — Max Pacioretty scored the tiebreaking goal with less than six minutes remaining, leading the Toronto Maple Leafs to a series-clinching 4-2 victory over the Ottawa Senators on Thursday night in Game 6 of their first-round matchup.

William Nylander had two goals, including an empty-netter in the final seconds, and an assist, and Auston Matthews added a power-play goal in the first period for Toronto. Anthony Stolarz made 20 saves.

Brady Tkachuk and David Perron scored for Ottawa. Thomas Chabot had two assists and Linus Ullmark made 19 saves.

The Maple Leafs advanced to take on the defending Stanley Cup champion Florida Panthers in the second round of the Eastern Conference playoffs. The Panthers beat the Tampa Bay Lightning in five games in their first-round series.

Toronto grabbed a 3-0 series lead, but Ottawa stayed alive with a 4-3 overtime victory in Game 4 and a 4-0 shutout in Game 5.

The Maple Leafs finally put away the Senators in Game 6.

With the game tied at 2, Pacioretty — a heathy scratch to start the series — scored the winner with 5:39 remaining off a pass from Max Domi that beat Ullmark to the glove side. It was Pacioretty’s first goal of the playoffs.

Scott Laughton hit the post before Nylander iced it into the empty net with 18.3 seconds left.

Matthews put Toronto up 1-0 on a power play with 70 seconds left in the first period when he fired a low shot through traffic.

Nylander, on his 29th birthday, made it 2-0 just 43 seconds into the second when he ripped a shot past Ullmark after Pacioretty forced a turnover from Senators defenseman Nick Jensen.

Ottawa got on the board at 7:28 when Tkachuk tipped a shot past Stolarz.

Toronto, which beat Ottawa four times in five playoffs series in the early 2000s, came close to restoring its two-goal lead when John Tavares poked a loose puck off the post before Ullmark denied Matthew Knies and Brandon Carlo off the rush.

Perron scored with 7:20 left in regulation to tie it on a shot from below the goal line that went in off Stolarz’s back to make it 2-2.

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Eichel’s 1st goal of series helps Knights advance

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Eichel's 1st goal of series helps Knights advance

ST. PAUL, Minn. — Jack Eichel scored his first goal of the series to give Vegas the lead late in the second period, and Adin Hill held it up on a 29-save night to spur the Golden Knights on to the second round with a 3-2 victory in Game 6 against the Minnesota Wild on Thursday night.

Shea Theodore scored first and Mark Stone scored last for Vegas, which will face the winner of the Edmonton-Los Angeles series. The Oilers took a 3-2 lead on the Kings into Game 6 on their home ice later Thursday.

Minnesota has lost nine consecutive series in the NHL playoffs and last made it out of the first round 10 years ago.

Ryan Hartman had two goals for the Wild, including a wraparound with 3:27 left that came 31 seconds after Stone had just given the Golden Knights a two-goal lead.

Stone, who set up Eichel with a long pass out of the zone that was inches out of reach of the stick of Kirill Kaprizov after he dived to try to prevent the breakaway, had four points in the last three games. Neither Stone nor Eichel recorded a single point in the first three games.

Hartman tied the game for the Wild with four seconds left in the first period, a goal safe from replay review unlike his go-ahead score in Game 5 with 1:15 remaining in regulation that was revoked for an offside call after Vegas challenged.

The Wild were unshaken by the consecutive overtime losses that erased their 2-1 lead, confident they measured up to the deeper Golden Knights and could still take the series.

They were quickly playing from behind, though, after Marco Rossi got the dreaded double minor penalty for high-sticking Brayden McNabb with just 2:27 elapsed in the game.

Theodore wristed in a shot from the high slot with Stone and Tomas Hertl screening Wild goalie Filip Gustavsson, immediately quieting the crowd near the end of the first power play. Gustavsson, who was forced out of Game 5 after two periods due to an illness, had 20 saves.

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NHS may offer weight loss jabs over the counter at pharmacies

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NHS may offer weight loss jabs over the counter at pharmacies

Patients will be able to get weight loss injections from pharmacies, according to reports. 

It’s claimed drugs such as Ozempic and Mounjaro could be available over the counter after a short consultation – at the cost of an NHS prescription.

This would broaden access to these jabs considerably, as the health service currently restricts injections to those regarded as having the highest clinical need.

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Weight loss drugs ‘changing way we see obesity’

At the moment, there is a two-year waiting list for Wegovy on the NHS – and last year, research by Sky News showed the rollout is happening far more slowly than planned.

Thousands of people with severe obesity have been denied access to the treatment, with doctors previously claiming that a “soul-destroying” postcode lottery has emerged.

According to the Daily Mail, a multimillion-pound deal for a pilot scheme will be struck with a pharmaceutical firm, with a view to issuing prescriptions through chemists and health centres.

They would be priced at £9.90 – the same as an NHS prescription – and substantially less than the £150-a-month cost of obtaining these injections privately.

More on Nhs

But the reports have been described as “speculative”, with health experts warning obesity drugs must only be used under medical supervision by those who are eligible.

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The weight loss drug that’s ‘too good’

A government spokesperson said: “As the government shifts the NHS from sickness to prevention, we will be looking across the board at how these drugs can be made available to more people who can benefit from them.

“The NHS is already tackling obesity in innovative ways, including through community care models and digital technologies, to help deliver these drugs as part of a rounded package of care.”

Previous estimates from the National Institute for Health and Care Excellence (NICE) have suggested that 3.4 million people in England could benefit from weight loss injections.

But last December, NICE said these jabs would only be available to 220,000 patients on the NHS in the first three years – meaning millions of others could end up waiting up to 12 years for treatment.

Read more from Sky News:
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UK’s hottest start to May on record
Police horses attacked by dog in park

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‘I need weight loss drug but can’t get it’

Studies show people lose on average 15% of their body weight within months of starting treatment with Wegovy. The drug mimics a natural hormone and people feel fuller faster and for longer.

Obesity costs the NHS £6bn a year and is linked to 200 different diseases.

Half of all obese people with three related problems, such as high blood pressure or diabetes, die within 10 years.

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