US GDP grew 3.4% in the third quarter, fueling market expectations for a December interest rate hike.

Data from the U.S. Department of Commerce shows that real GDP grew at an annualized quarter-on-quarter rate of 3.4% in the third quarter, with consumer spending increasing by 3.8% and business equipment investment rising by 20.9%. Federal Reserve Chairman Kevin Warsh had previously stated that the U.S. economy was not overheating, but the latest data challenges that assessment, and the market continues to bet on a Fed rate hike in December.