GDP Softness Confirms Fed Won’t Accelerate Future Rate Hikes

The economy grew 2 percent during third quarter, compared to 3.9 percent in second quarter, evidence the Federal Reserve won’t be in any hurry to hike rates again. ‘This is not the kind of number that’s going to get the Fed to accelerate in their movement to gradually raise rates, but it is confirmation that the recovery continues.’ said Michael Hanson, senior economist at Bank of America Merrill Lynch, based in New York. Meanwhile, consumer spending rose 3 percent during third quarter. ‘If you look back, five of the last six quarters have consumer spending at 3 percent or better,’ he said. ‘I think some people were hoping to see a little bit more of a pickup in consumer spending, particularly with low oil prices.’ Hanson speaks with TheStreet’s Scott Gamm in New York.