The Globe and Mail reports in its Wednesday, Sept. 18, edition that U.S. retail sales unexpectedly increased in August, despite a decrease in sales at car dealerships, as on-line purchases showed strength. A Reuters dispatch to The Globe reports that this suggests that the economy remained strong in the third quarter. The Commerce Department's report on Tuesday also revealed that retail sales were slightly stronger than initially reported in July. This, coupled with the decrease in the unemployment rate last month, goes against financial market expectations for a half-percentage-point interest-rate cut from the Federal Reserve on Wednesday. Fed officials began a two-day policy meeting on Tuesday. After the data, the Atlanta Fed raised its third quarter gross-domestic-product growth estimate to a 3-per-cent annualized rate from the previously estimated 2.5-per-cent pace. The economy had grown at a 3-per-cent pace in the second quarter. FWDBONDS economist Christopher Rupkey said, "There does not appear to be any reason for Fed officials to start out with a larger 50-basis-points rate cut because whatever stress there is in the labour market, it isn't translating into weaker economic demand."