# Kabra Frames Consumer Divisions as a Fed Inflation Challenge By Token Post Canonical URL: https://www.tokenpost.com/news/insights/54801 Published: 2026-11-12T02:18:15.000Z Updated: 2026-11-12T02:18:15.000Z Section: Insights & Views > The Societe Generale strategist described widening divisions among U.S. consumers as a K-shaped economy. Third-quarter GDP grew at a 3.4% annualized pace. Manish Kabra, a cross-asset strategist at Societe Generale, described widening divisions among U.S. consumers as a K-shaped economy and framed the divide as a challenge for the Federal Reserve’s effort to control inflation. Real gross domestic product grew at a 3.4% annualized quarter-over-quarter rate in the third quarter. Consumer spending rose 3.8%, and business investment in equipment increased 20.9%. The [third-quarter growth figures]() came as inflation pressures broadened. Separately, Federal Reserve Bank of Cleveland President Beth M. Hammack warned that prolonged above-target inflation could shift wage and price expectations, making progress toward the Fed’s goal harder. Her [warning about persistent inflation]() adds context to the Fed’s challenge. ## Links in this article - [third-quarter growth figures](https://www.tokenpost.com/news/regulation/44774) - [warning about persistent inflation](https://www.tokenpost.com/news/regulation/24353)