Connect with us

World

US economy expands at a surprisingly strong 4.3% annual rate in the third quarter

Published

on

US economy expands at a surprisingly strong 4.3% annual rate in the third quarter

WASHINGTON (AP) — The U.S. economy grew at a surprisingly strong 4.3% annual rate in the third quarter, the most rapid expansion in two years, as government and consumer spending, as well as exports, all increased.

U.S. gross domestic product from July through September — the economy’s total output of goods and services — rose from its 3.8% growth rate in the April-June quarter, the Commerce Department said Tuesday in a report delayed by the government shutdown. Analysts surveyed by the data firm FactSet forecast growth of 3% in the period.

However, inflation remains higher than the Federal Reserve would like. The Fed’s favored inflation gauge — called the personal consumption expenditures index, or PCE — climbed to a 2.8% annual pace last quarter, up from 2.1% in the second quarter.

A television on the floor at the New York Stock Exchange in New York, display a news conference with Fed chairman Jerome Powell, Wednesday, Dec. 10, 2025. (AP Photo/Seth Wenig)

Advertisement

Advertisement

Excluding volatile food and energy prices, so-called core PCE inflation was 2.9%, up from 2.6% in the April-June quarter.

Economists say that persistent and potentially worsening inflation could make a January interest rate cut from the Fed less likely, even as central bank official remain concerned about a slowing labor market.

“If the economy keeps producing at this level, then there isn’t as much need to worry about a slowing economy,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management, adding that inflation could return as the greatest concern about the economy.

Advertisement

In a slow holiday trading week, U.S. markets on Wall Street turned lower following the GDP report, likely due to growing doubts that another Fed rate cut is coming next month.

Consumer spending, which accounts for about 70% of U.S. economic activity, rose to a 3.5% annual pace last quarter, up from 2.5% in the April-June period.

A person carries a shopping bag in Philadelphia, Wednesday, Dec. 10, 2025. (AP Photo/Matt Rourke, File)

A person carries a shopping bag in Philadelphia, Wednesday, Dec. 10, 2025. (AP Photo/Matt Rourke, File)

Advertisement

Consumption and investment by the government grew by 2.2% in the quarter after contracting 0.1% in the second quarter. The third quarter figure was boosted by increased expenditures at the state and local levels and federal government defense spending.

Private business investment fell 0.3%, led by declines in investment in housing and in nonresidential buildings such as offices and warehouses. However, that decline was much less than the 13.8% slide in the second quarter.

Within the GDP data, a category that measures the economy’s underlying strength grew at a 3% annual rate from July through September, up slightly from 2.9% in the second quarter. This category includes consumer spending and private investment, but excludes volatile items like exports, inventories and government spending.

Exports grew at an 8.8% rate, while imports, which subtract from GDP, fell another 4.7%.

Tuesday’s report is the first of three estimates the government will make of GDP growth for the third quarter of the year.

Advertisement

Outside of the first quarter, when the economy shrank for the first time in three years as companies rushed to import goods ahead of President Donald Trump’s tariff rollout, the U.S. economy has continued to expand at a healthy rate. That’s despite much higher borrowing rates the Fed imposed in 2022 and 2023 in its drive to curb the inflation that surged as the United States bounced back with unexpected strength from the brief but devastating COVID-19 recession of 2020.

Though inflation remains above the Fed’s 2% target, the central bank cut its benchmark lending rate three times in a row to close out 2025, mostly out of concern for a job market that has steadily lost momentum since spring.

Roofers work atop a house in Anna, Texas, Thursday, Dec. 18, 2025. (AP Photo/LM Otero)

Roofers work atop a house in Anna, Texas, Thursday, Dec. 18, 2025. (AP Photo/LM Otero)

Advertisement

Last week, the government reported that the U.S. economy gained a healthy 64,000 jobs in November but lost 105,000 in October. Notably, the unemployment rate rose to 4.6% last month, the highest since 2021.

The country’s labor market has been stuck in a “low hire, low fire” state, economists say, as businesses stand pat due to uncertainty over Trump’s tariffs and the lingering effects of elevated interest rates. Since March, job creation has fallen to an average 35,000 a month, compared to 71,000 in the year ended in March. Fed Chair Jerome Powell has said that he suspects those numbers will be revised even lower.

Advertisement

World

A look at some of the contenders to be Iran’s supreme leader after the killing of Khamenei

Published

on

A look at some of the contenders to be Iran’s supreme leader after the killing of Khamenei

Iran’s leaders are scrambling to replace Supreme Leader Ayatollah Ali Khamenei, who ruled the country for 37 years before he was killed in the surprise U.S. and Israeli bombardment.

It’s only the second time since the 1979 Islamic Revolution that a new supreme leader is being chosen. Potential candidates range from hard-liners committed to confrontation with the West to reformists who seek diplomatic engagement.

The supreme leader has the final say on all major decisions, including war, peace and the country’s disputed nuclear program.

In the meantime, a provisional governing council composed of President Masoud Pezeshkian, hard-line judiciary chief Gholamhossein Mohseni Ejei and senior Shiite cleric Ayatollah Ali Reza Arafi is guiding the country through its biggest crisis in decades. Foreign Minister Abbas Araghchi said Sunday that a new supreme leader would be chosen early this week.

The supreme leader is appointed by an 88-member panel called the Assembly of Experts, who by law are supposed to quickly name a successor. The panel consists of Shiite clerics who are popularly elected after their candidacies are approved by the Guardian Council, Iran’s constitutional watchdog.

Advertisement

Khamenei had major influence over both clerical bodies, making it unlikely the next leader will mark a radical departure.

Here are the top contenders.

Mojtaba Khamenei

The son of Khamenei, a mid-level Shiite cleric, is widely considered a potential successor. He has strong ties to Iran’s paramilitary Revolutionary Guard but has never held office. His selection could prove awkward, as the Islamic Republic has long criticized hereditary rule and cast itself as a more just alternative.

Advertisement

Ayatollah Ali Reza Arafi

Arafi is a member of the provisional government council. The senior Shiite cleric was handpicked by Khamenei to be a member of the Guardian Council in 2019, and three years later he was elected to the Assembly of Experts. He leads a network of seminaries.

Hassan Rouhani

Rouhani, a relative moderate, was president of Iran from 2013 to 2021 and reached the landmark nuclear agreement with the Obama administration that U.S. President Donald Trump scrapped during his first term. Rouhani served on the Assembly of Experts until 2024, when he said he was disqualified from running for reelection. Rouhani criticized it as an infringement on Iranians’ political participation.

Hassan Khomeini

Khomeini is the most prominent grandson of the founder of the Islamic Republic, Ayatollah Ruhollah Khomeini. He is also seen as a relative moderate, but has never held government office. He currently works at his grandfather’s mausoleum in Tehran.

Ayatollah Mohammed Mehdi Mirbagheri

Mirbagheri is a senior cleric popular with hard-liners who serves on the Assembly of Experts.

He was close to the late Ayatollah Mohammad Taghi Mesbah Yazdi, a fellow hard-liner who wrote that Iran should not deprive itself of the right to produce “special weapons,” a veiled reference to nuclear arms.

Advertisement

During the COVID-19 pandemic, Mirbagheri denounced the closure of schools as a “conspiracy.”

He is currently the head of the Islamic Cultural Center in Qom, the main center for Islamic teaching in Iran.

Advertisement
Continue Reading

World

US cleared to use British bases for limited strikes on Iranian missile capabilities

Published

on

US cleared to use British bases for limited strikes on Iranian missile capabilities

NEWYou can now listen to Fox News articles!

The U.S. has been cleared to use British bases for limited strikes on Iran’s missile capabilities after Prime Minister Keir Starmer signed off on the plan, and while U.K. Defense Secretary John Healey stated on Sunday Britain had “stepped up alongside the Americans.”

“The only way to stop the threat is to destroy the missiles at source, in their storage depots or the launchers which are used to fire the missiles,” Starmer confirmed in a recorded statement to the nation.

“The U.S. has requested permission to use British bases for that specific and limited defensive purpose,” he said. “We have taken the decision to accept this request.”

The decision came amid escalation across the Middle East in the wake of U.S. and Israeli strikes on Iran and Tehran’s retaliatory missile and drone attacks, raising fears of a broader regional conflict.

Advertisement

British Prime Minister Keir Starmer signed off on a plan to use British bases for limited strikes on Iranian missile capabilities. (Kin Cheung / POOL / AFP via Getty Images)

On Feb. 28, in the wake of Operation Epic Fury, Starmer confirmed British planes “are in the sky today” across the Middle East “as part of coordinated regional defensive operations to protect our people, our interests and our allies.”

Healey went on to disclose Sunday that two Iranian missiles were fired in the direction of Cyprus, where Britain maintains key sovereign base areas.

The Royal Air Force confirmed that Typhoon jets operating from Qatar as part of the joint U.K.-Qatar Typhoon Squadron successfully intercepted an Iranian drone heading toward Qatar.

About 300 British personnel are stationed at a naval facility in Bahrain, where Iranian missiles and drones struck nearby areas.

Advertisement

“We’re taking down the drones that are menacing either our bases, our people or our allies,” Healey told “Sunday Morning with Trevor Phillips” on Sky. “We’ve stepped up alongside the Americans. We’ve stepped up our defensive forces in the Middle East. We’re flying those sorties.”

ISRAEL’S LARGEST EVER MILITARY FLYOVER HAMMERS IRANIAN MILITARY TARGETS

British Defense Secretary John Healey stressed that the U.K. had “no part” in the American-Israeli strikes on Iran. (Peter Nicholls/Pool via Reuters)

Healey also made sure to stress that the U.K. had “no part” in the U.S. and Israeli strikes on Iran and insisted all British actions were defensive. “All our actions are about defending U.K. interests and defending U.K. allies,” he said.

When asked if the U.K. would join the U.S. in offensive action, Healey said, “I’m not going to speculate,” according to Sky News.

Advertisement

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Downing Street also confirmed Feb. 28 that Starmer and President Donald Trump had spoken by phone about the “situation in the Middle East,” the BBC reported.

Fox News Digital has reached out to Downing Street for comment.

Related Article

Hormuz erupts: Attacks, GPS jamming, Houthi threats rock Strait amid US-Israeli strikes
Continue Reading

World

Pakistan calls troops, orders 3-day curfew as 24 killed in pro-Iran rallies

Published

on

Pakistan calls troops, orders 3-day curfew as 24 killed in pro-Iran rallies

Army deployed and some areas in northern Gilgit-Baltistan region put under curfew after deadly violence over Khamenei’s killing.

Pakistan has called in the military and imposed a three-day curfew in some areas following deadly protests over the killing of Iran’s Supreme Leader Ayatollah Ali Khamenei in a joint United States-Israeli attack on Saturday.

Advertisement

At least 24 people were killed and dozens injured in clashes between protesters and security forces across the country on Sunday, prompting authorities to tighten security around the US embassy and consulates.

Recommended Stories

list of 4 itemsend of list

The curfew was imposed before dawn Monday in the districts of Gilgit, Skurdu, and Shigar in the northern Gilgit-Baltistan region, where at least 12 protesters and one security officer were killed and dozens of others wounded during confrontations, according to an official statement.

Of those, seven were killed in Gilgit, a rescue official said, while six others died in Skardu, a doctor told AFP news agency on Monday.

Thousands of demonstrators on Sunday attacked the offices of the United Nations Military Observer Group in India and Pakistan (UNMOGIP), which monitors the ceasefire along the disputed Himalayan region of Kashmir, and the UN Development Programme in Skardu city.

Protesters also burned a police station and damaged a school and the offices of a local charity in Gilgit, according to officials.

Advertisement

UN spokesman Stephane Dujarric on Monday said protesters became violent near the UNMOGIP Field Station, which was vandalised.

“The safety and security of UN personnel and premises throughout the region remain our top priority, and we continue to closely monitor the situation,” Dujarric said.

Shabir Mir, a Gilgit-Baltistan government spokesman, said the situation was under control and that the curfew would remain in place until Wednesday. Police chief Akbar Nasir Khan urged residents to stay indoors, citing “deteriorating law and order conditions”.

In the southern port city of Karachi, the country’s commercial hub, 10 people were killed and more than 60 injured during a protest outside the US consulate.

Two additional protesters were killed in the capital, Islamabad, while heading towards the US embassy.

Advertisement

Pakistani authorities have beefed up security at US diplomatic missions across the country, including around the US consulate building in Peshawar, to avoid any further violence.

The US embassy and its consulates in Karachi and Lahore cancelled visa appointments and American Citizen Services on Monday, citing security concerns.

The federal government warned that the situation could further deteriorate amid large-scale demonstrations condemning Khamenei’s killing on Saturday.

Tehran has responded with a series of drone and missile attacks targeting Israel and US assets in several Gulf countries.

Advertisement
Continue Reading

Trending