Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action news and analysis.

Good afternoon, today is Thursday January 25th, I'm your host Kim Con. Our top story so far.

US GDP growth came in much stronger than expected to wrap up 2023,

while the accompanying inflation data eased worries that the

Fed Hawks would leave their nests.

The initial estimate for Q4 GDP showed it rose at an annual rate of 3.3%, well ahead of the 2% consensus and easing from its exceptionally

strong pace of 4.9% in Q3.

The quarter's growth reflected increases in consumer spending, exports, state and

local government spending, non-residential fixed investment, federal government spending, private

inventory investment, and residential investment. In other words consumers, businesses, and the

government kept spending. The only offset was increased imports which subtracts

from the figure. Dario Perkins, economist at Global Data T.S. Lombard, says it's a rough landscape for the

but the economy is much weaker than it seems crowd because there isn't much to dislike in this

GDP release.

Congrats America, you have an economy we can only dream about in Europe.

The core PC-PCE price index, which is the Fed's preferred measurement inflation,

came in right at the FEMC target of 2%, and that was in line with expectations.

That's down from 2.3% in Q3.

The 2% pace sets the stage for an easing in the Fed's too restrictive policy rate by mid-year, said Joseph

Brasilis, chief economist at RMS. Following the Goldilocks mix of growth and

inflation, the market reacted accordingly. Stocks moved higher, with the major averages up around half a percent.

Treasury yields are moving back slightly.

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