WASHINGTON - s4story -- The latest Federal Reserve and economic reports reveal a widening divide between strong U.S. economic growth and the financial challenges confronting Black and minority-owned businesses.

The Bureau of Economic Analysis reported Thursday that third-quarter real GDP increased 3.4% at an annual rate, accelerating from 2.2% in the second quarter. Growth was supported by consumer spending, investment, and government expenditures, with real final sales to private domestic purchasers increasing 4.9%.

However, the same day's inflation report showed that the Personal Consumption Expenditures (PCE) Price Index increased 3.6% over the past twelve months, while core PCE inflation reached 3.1%. Consumer prices rose 0.5% in September, outpacing the 0.2% increase in personal income.

On October 28, the Federal Reserve voted 10–2 to maintain its benchmark interest-rate target at 3.75%–4.00%. Two policymakers favored an additional quarter-point increase.

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The Trump Triple Squeeze

Creative Investment Research describes the emerging economic condition as the "Trump Triple Squeeze"—a combination of three pressures affecting minority-owned businesses:

• Jobs: Slowing employment growth, with September payrolls increasing only 29,000 and Black unemployment reaching 7.0%.
• Costs: Persistent inflation increasing expenses for transportation, energy, materials, insurance, and other business inputs.
• Capital: Elevated interest rates restricting access to affordable financing for inventory, equipment, payroll, and expansion.

"The economy grew 3.4%, but Black unemployment reached 7%. That tells us that economic growth and economic opportunity are not the same thing," said William Michael Cunningham, economist. "The Trump Triple Squeeze threatens minority businesses from three directions simultaneously—slower employment growth, higher operating costs, and expensive capital. GDP can rise while small-business profitability and economic security deteriorate."

Strong GDP Does Not Guarantee Minority-Business Growth

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CIR cautioned that strong investment in artificial intelligence, advanced manufacturing, and infrastructure may disproportionately benefit larger, capital-intensive businesses unless certified Minority Business Enterprises (MBEs) gain greater access to procurement contracts and financing.

Higher operating costs are particularly concerning for minority-owned suppliers operating under fixed-price contracts.

Similarly, the Federal Reserve's decision to maintain interest rates means smaller businesses may continue facing difficult financing conditions despite positive economic growth.

CIR Calls for Targeted Economic Action

Creative Investment Research recommends expanded access to affordable MBE financing, stronger corporate supplier-diversity commitments, increased minority-business participation in AI and infrastructure investment, and improved measurement of minority-business economic conditions.

See: https://www.impactinvesting.online/2026/10/gdp-surges-34-inflation-persists.html