Posted on Thursday, July 31, 2025
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by Alan Jamison
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0 Comments
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America’s economic growth shattered expectations for the second quarter of the year, with gross domestic product (GDP) increasing by 3% from April to June, according to a new report from the Department of Commerce. That result is significantly higher than the 2.3% growth that economists had originally predicted.
Inflation was also significantly down in the report. In the first quarter of 2025, the inflation rate was 3.7%. In the second quarter, that figure dropped to 2.1%, just slightly above the Fed’s target of 2.0%. The first quarter saw the Biden administration’s transition to the Trump administration, with the second quarter being the first where President Donald Trump was serving in office for the full three months.
Trump celebrated the news and called for the Federal Reserve to lower interest rates in a post on Truth Social. “2Q GDP JUST OUT: 3%, WAY BETTER THAN EXPECTED!” the president posted. “[Fed Chair Jerome Powell] MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!”
Despite the President’s urging, the Fed kept interest rates unchanged at 4.25% to 4.5%. The rate has remained the same since December of last year.
Real consumer spending growth also increased from 0.5% in the first quarter to 1.4% in the second quarter. Real disposable income increased by 3% in the second quarter after a strong 2.5% in the first quarter.
The White House explained that the growth is driven by the private sector with the federal government actually spending less in the second quarter – a marked shift from the Biden administration, when most “growth” was driven by government spending. The White House said in a press release that Trump’s new trade deals with foreign nations are “reducing our reliance on foreign products, boosting U.S. investment, and creating jobs.”
The GDP report also notably found that auto manufacturing output increased at a 35.5% annual rate, which is the largest increase since 2020. Manufacturing output has additionally increased by 1.8% since Trump returned to office.
White House Press Secretary Karoline Leavitt credited the second quarter’s growth to the President’s economic policies.
“Today, GDP growth came in above market expectations, and yesterday, consumer confidence rose,” she said. “Americans trust in President Trump’s America First economic agenda that continues to prove the so-called ‘experts’ wrong. President Trump has reduced America’s reliance on foreign products, boosted investment in the U.S., and created thousands of jobs — delivering on his promise to Make America Wealthy Again.”
Commerce Secretary Howard Lutnick also praised Trump’s economic policies in a post on X. He said that tariffs are leading to greater investments in the U.S. economy.
“GDP just surged to 3% and the Trump Economy has officially arrived,” Lutnick said. “Biden’s first quarter is behind us, and growth is already accelerating. President Trump’s tariff policies have drawn historic investments and opened up global markets for U.S. businesses. Congratulations America: 3% today, and we’re just getting started.”
Trump additionally announced two new trade deals Wednesday after the Commerce Department’s report. He first announced a new trade deal with Pakistan to grow America’s oil reserves. This was followed by an announcement later in the evening that the U.S. has a new trade agreement with South Korea that includes “$350 Billion Dollars for Investments owned and controlled by the United States.” South Korea will also allow American products such as cars and trucks to now be sold within the country going forward.
Alan Jamison is the pen name of a political writer with extensive experience writing for several notable politicians and news outlets.
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