US Economic Growth Forecast Rises on AI-Driven Investment

Economists have revised their forecasts for US economic growth in the third quarter, predicting a 2.5% annualized rate, up from 2% previously.

This increase is attributed to upward adjustments in consumer spending and private investment, particularly in artificial intelligence-related capital expenditures, which may exceed $1 trillion this year and $1.5 trillion in 2027.

The Federal Reserve's interest rates are expected to remain unchanged through July of next year, as the core PCE price metric shows moderating inflation.