U.S. GDP 'Surprise Growth'... Trump Says 'Rates Must Be Cut Now'

JOON HYOUNG LEE

Summary

The U.S. second-quarter GDP far exceeded expert forecasts, showing signs of recovery.
President Donald Trump reportedly again pressured the Fed for an interest rate cut, citing these positive economic indicators.
President Trump emphasized that, with no inflation, lowering interest rates is necessary to boost home purchases and refinancing.

As the U.S. economy showed signs of recovery in the second quarter, President Donald Trump again pressured the Fed to lower interest rates.

On the 30th (local time), President Trump posted on his social media, Truth Social, saying, "(The U.S.) second-quarter GDP was much better than expected" and insisted, "Now is the time to cut rates immediately." He added, "There is no inflation," and argued, "(By cutting rates) people will be able to buy homes and refinance."

The U.S. Department of Commerce announced that the preliminary growth rate of U.S. GDP in the second quarter was recorded at 3.0% (quarter-on-quarter annualized). This far exceeds the estimated potential growth rate in the low 2% range and also greatly surpasses experts' forecasts (2.3%) compiled by Dow Jones.

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