Trump touts 3% GDP growth and calls for a Fed cut rate after the second quarter rebound
Varney & Co. Host Stuart Varney, President Donald Trumps discusses building renovations with Federal Reserve Chairman Jerome Powell.
president Donald Trump On Wednesday, he touted the latest GDP data, which showed rebounds from the first quarter, and reiterated his call to cut the Federal Reserve ahead of the central bank’s announcement later today.
In a post about his true social platform, Trump wrote, “2Q GDP is just out and it’s far better than expected!”
The president’s comments follow the release of the first estimate by the Commerce Department Second quarter GDPwhich showed that the economy grew at an annual pace of 3% in the second quarter after shrinking 0.5% in the first quarter. Economists surveyed by LSEG were hoping for a 2.4% increase in the second quarter.
Q1 contractions were driven by a surge in imports. This explains products that have been subtracted in GDP calculations and produced overseas. Imports slowed down in the second quarter, and consumer spending increased. This is said to be pointed out by the Bureau of Economic Analysis.
Will Powell and the Fed cut fees in response to Trump’s pressure?
Trump’s post also called on the Federal Reserve Chairman Jerome Powellthe president calls it “Mr. Too late” in his long-term efforts to put pressure on Powell and the Fed to cut interest rates in order to boost the economy.
The Federal Open Market Committee (FOMC), a 12-member panel that collectively sets the Fed’s monetary policy, is set to release its latest decision on interest rates later Wednesday.
JP Morgan warns that the Federal Reserve is at stake independence of Trump’s pressure campaign
President Donald Trump has repeatedly criticized the Fed Chairman Jerome Powell and the Fed for not cutting interest rates. (Aaron Schwartz/CNP/Bloomberg byOtty Images/Getty Images)
The central bank is widely expected to maintain stable rates in the current target range of 4.25% to 4.5% since the last cut in FOMC in December 2024.
Policymakers show they want to see the impact of tariffs. Inflation data It also monitors signs of weakness in the labor market, but shows that one or two FOMC members may support interest rate cuts at the meeting and oppose the group’s decision.
Trump says Fed chairman calls Powell “knucklehead,” and says interest rates should be below 1%
Federal Reserve Chairman Jerome Powell testified before a Bank, Housing and Urban Senate Committee during hearings to examine the six-monthly monetary policy report to Congress in Capitol Hill on June 25, 2025. (Kent Nishimura / Getty Images / Getty Images)
Governor Christopher Waller He said he believes the Fed will cut interest rates, dismiss concerns about tariffs that promote inflation and argue that policymakers will insist on causing a one-off price hike that should be seen in the past.
Additionally, Fed Gov. Michelle Bowman said the meeting believes interest rate cuts are needed to prevent further weakening. Lab.
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The market believes the Fed is likely to cut interest rates in September, and the CME FedWatch tool shows a 59.8% chance of FOMC continuing to stabilize interest rates at 38.3%.