U.S. Economy Expands 3.1% in Q3, Calming Recession Fears

The U.S. economy grew 3.1% in Q3 2025, exceeding projections amid easing inflation and resilient consumer demand. Lower energy costs and stable job creation supported household spending, while fixed investments rebounded moderately. Economists say the stronger-than-expected GDP print reduces near-term recession risk and strengthens the Federal Reserve’s case for a December rate cut. Markets responded positively, with Treasury yields easing and equity futures turning green ahead of next week’s policy updates.