US GDP Nowcast Stable, ECB Signals Patience Amid Inflation Volatility

By / / Breaking News

Key Takeaways

  • The New York Federal Reserve's GDP Nowcast for Q3 2025 remains steady at 2.34%, while the Q4 forecast saw a slight uptick to 2.25% from 2.23%.
  • European Central Bank (ECB) Governing Council member Martins Kazaks indicated no immediate need for an upside or downside bias on interest rates.
  • Kazaks highlighted a greater awareness of downside inflation risks compared to upside risks, suggesting a cautious approach to monetary policy.
  • The ECB official emphasized the importance of taking time to analyze incoming economic data and acknowledged expected volatility around the 2% inflation target.

The U.S. economic outlook for the third quarter of 2025 appears stable, with the New York Federal Reserve's latest GDP Nowcast holding firm at 2.34%. This figure remained unchanged from its previous reading. Looking ahead, the forecast for the fourth quarter of 2025 showed a modest increase, rising to 2.25% from an earlier projection of 2.23%. These figures provide a real-time assessment of economic growth, offering insights into the current pace of expansion in the United States.

Across the Atlantic, European Central Bank Governing Council member Martins Kazaks provided a nuanced perspective on the Eurozone's monetary policy. Kazaks stated that there is no immediate necessity to adopt an upside or downside bias on interest rates, suggesting a wait-and-see approach from the central bank. This indicates a period of careful observation as the ECB navigates ongoing economic conditions.

Kazaks further elaborated on the ECB's inflation outlook, expressing a greater awareness of downside inflation risks than upside risks. This sentiment underscores the central bank's vigilance regarding potential disinflationary pressures. He also emphasized the importance of patience, noting that the ECB "can take time to look at the data" before making significant policy adjustments.

Despite the cautious stance, Kazaks acknowledged that there will inevitably be volatility around the ECB's 2% inflation target. This recognition suggests that the central bank is prepared for fluctuations in price levels as it works towards its medium-term objective. The remarks collectively signal a prudent and data-dependent approach to monetary policy in the Eurozone.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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