US GDP Expected to Remain Unchanged at 2.8% in Q4 2024

U.S. GDP Expected to Remain Unchanged at 2.8% in Q4 2024  

The Bureau of Economic Analysis is scheduled to release its quarterly report regarding the United States Gross Domestic Product on 19 December 2024 at 13:30 GMT. The GDP forecast indicates a growth rate of 2.8%, which is the same as the prior quarter.

It calculates the market value of all the goods and services produced within the country during some period, adjusted for inflation to ensure a comparison. In this vital indicator, one has consumer spending, government expenditure, investment, and finally net exports. The above gives an indication of the economic well-being of a nation, including living standards.

That can imply, if the forecast goes according to expectations, there was regular economic activity. A strong performance would likely increase the U.S. dollar since investors view the steady growth of GDP as a resilience factor. A deviation from that could affect the market sentiment: while one higher than expected can make the optimism soar higher, probably driving the dollar high, a weaker one will create fears of slowing down growth.

The looming release of the data is expected to set the tone of economic expectations as markets weigh in on the health of the US economy into 2025. Trends in consumer spending and trade imbalances will be followed with interest for any effect on the broad economic view.

Federal Reserve Interest Rate Decision Due on December 18, 2024  

The interest rate decision is to be released by the Federal Reserve, scheduled for 18 December 2024 at 19:00 GMT. The interest rate of 4.75% was maintained earlier this year and participants in financial markets will look toward the result of voting at FOMC.

The Federal Reserve's decisions on the short-term interest rate usually have a bearing on the performance of the US dollar. A stronger USD may result from an increase in rates, as higher interest rates could attract more foreign investment. Conversely, a decrease might weigh on the dollar, as it may indicate that there is a concern about an economic slowdown or inflationary pressures.

Without a change in rate, market attention would shift toward the split in votes and what is said in their accompanying statements. Analysts may be analyzing the minutes for hints at sentiment within the Fed and how that could potentially affect moves in 2025.