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U.S. economy grew at a 3% rate in Q2, a better-than-expected pace even as Trump’s tariffs hit

VySky said:
President Trump making America great again.

It's not just a slogan.
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I think that is going to be proved untrue.......Bookmarked
 
anatta said:
UE came down a bit as well.. all good
  • Gross domestic product jumped 3% for the second quarter, better than the 2.3% estimate and reversing a 0.5% decline in the prior period.
  • Consumer spending rose 1.4% in the second quarter, better than the 0.5% in the prior period.
  • While exports declined 1.8% during the period, imports fell 30.3%, reversing a 37.9% surge in Q1.
  • President Donald Trump responded to the GDP report with a fresh demand for the Federal Reserve to lower interest rates.
“The anti Trump story has been that we’re going to have a recession or a depression because of the tariffs, which are going to jack up prices and cause consumers to run for the exits” Kevin Hassett, National Economic Council director, said on CNBC. “In fact, every single thing about this GDP release has shown strength.”

Trump has been complaining about high mortgage rates, which have held back the housing market. Residential investment fell 4.6% in Q2.

At the same time, GDP posted its strong rise without help from government spending. Federal outlays declined 3.7%, coming off a 4.6% drop in the first quarter.
State and local government spending rose 3%.
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If the economy is doing well, there's no reason to lower interest rates.
 
VySky said:
President Trump making America great again.

It's not just a slogan.
Click to expand...
how exactly are we going to be "great"? when were we last great? did he make us great when we were in his first term?
until you can give specifics..yes...its just a slogan.
 
Michael Cole said:
If the economy is doing well, there's no reason to lower interest rates.
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A number of pinheads, Trump among them, don't get that the inflation rate increased, rather than decreased, last measured. The goal is 2 percent, but it continues to be too high. Trump is demanding the lowering of rates, which will almost certainly return us to a path of more inflation.

Of course, his demand is purely political. He is afraid his policies will reduce growth (as they will) and is willing to avoid that perception by restarting inflationary growth. The Feds, rightly, want to see inflation tamed before they pursue such policies.
 
Chomsky said:
You indeed are right. He's doing a Reality Show.
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You nailed it. Look at his recent appointees - television appearance is more important than qualifications.

You're getting close to understanding Trump; keep asking questions and you will find more answers.
 
dobieg said:
No.

Markets are waiting for the FOMC announcement and Powell comments later this afternoon.
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You have no idea what the **** the markets are waiting for. Get real.
 
Chomsky said:
Yeah. Trump enacts huge 145% tariffs on China, the world (incl us posters) reacts predicting upheaval, Trump TACO's, and in response to the TACO we're attacked & belittled.

It that don't exemplify the MAGA ethos, I don't know what does?
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100%. They are nothing but disingenuous hacks. The lot of them. Well the part of the lot that isn't actually dumb as shit. To be fair, I'm not sure what the ratio is.
 
tharock220 said:
This means it’s still Biden’s economy. If we’d seen a contraction the leftoids would call it Trump’s.

In all seriousness, I like positive economic news regardless of who’s president.
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It's Trump's economy on his first day in office. It was Biden's economy on his first day in office.
 
VySky said:
President Trump making America great again.

It's not just a slogan.
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No, it is just a slogan. Increasing cost of living for Americans isn't making us great.
 
dobieg said:
I have an ounce of common sense and knowledge of basic economic theory.

Again, Biden pumped hundreds of billions into American consumers when we were already back to full employment while at the same time we were experiencing severe supply chain disruptions (apprently you forgot about empty store shelves). You want to simply ignore the most basic of economic principles of too many dollars chasing too few goods. Classic inflation.

You can pretend you don't understand what I'm saying and instead resort with your typical smarmy posts but anyone older than a 3rd grader will understand.
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And yet you have no idea what the affects tariffs have on an economy? hmm
 
Metric Mouse said:
You would have to understand American tax laws. For many decades Americans have lowered taxes across the board. Rates are at historic lows, as well as far, far lower than most developed countries.

This has led to increasing problems of lowered social services, massive debt and massive wealth inequality.

Raising taxes is one of the first steps to rectifying this problem.
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Indeed. And the USA has a process for accomplishing this. We don't have a king ffs.
 
VySky said:
President Trump making America great again.

It's not just a slogan.
Click to expand...
I'd love to know the objective criteria you are using to make that statement.
 
anatta said:
UE came down a bit as well.. all good
  • Gross domestic product jumped 3% for the second quarter, better than the 2.3% estimate and reversing a 0.5% decline in the prior period.
  • Consumer spending rose 1.4% in the second quarter, better than the 0.5% in the prior period.
  • While exports declined 1.8% during the period, imports fell 30.3%, reversing a 37.9% surge in Q1.
  • President Donald Trump responded to the GDP report with a fresh demand for the Federal Reserve to lower interest rates.
“The anti Trump story has been that we’re going to have a recession or a depression because of the tariffs, which are going to jack up prices and cause consumers to run for the exits” Kevin Hassett, National Economic Council director, said on CNBC. “In fact, every single thing about this GDP release has shown strength.”

Trump has been complaining about high mortgage rates, which have held back the housing market. Residential investment fell 4.6% in Q2.

At the same time, GDP posted its strong rise without help from government spending. Federal outlays declined 3.7%, coming off a 4.6% drop in the first quarter.
State and local government spending rose 3%.
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It's called, WINNING!!!!!!! Thank you President Trump.
And the democrats complain about success and blue jeans.
 
Integrityrespec said:
It's called, WINNING!!!!!!! Thank you President Trump.
And the democrats complain about success and blue jeans.
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i hope you blamed trump for the first quarter gdp.
and the increase in inflation in june.

the stock market fell today, it wasn't much impressed by this "winning".
 
anatta said:
I am still trying to sell my house..i had to drop the price 2 x. housing -if nothing else needs a rate cut
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That's the case throughout the country. Everywhere, sellers are having to drop prices - like you said, even multiple times.
 
Really good news today with this release. Hassett summed it up well.

"It's really one of the best GDP announcements or releases that you can imagine because there's blockbuster growth way above expectation, and there's also a real, real, almost collapse in inflation. It went down by about 1.5%, all the way down to 2.1%, which is the Fed's target," he said. "So to have high growth with low inflation and also high income growth, personal income growth was 3%, that's just like about a sweet spot for a GDP release."
 
gbg3 said:
Really good news today with this release. Hassett summed it up well.

"It's really one of the best GDP announcements or releases that you can imagine because there's blockbuster growth way above expectation, and there's also a real, real, almost collapse in inflation. It went down by about 1.5%, all the way down to 2.1%, which is the Fed's target," he said. "So to have high growth with low inflation and also high income growth, personal income growth was 3%, that's just like about a sweet spot for a GDP release."
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lol. trump fanboy approves of results under trump.
we'll see if the "blockbuster growth" continues as people adjust to tariffs, and how inflation is. This quarter was somewhat of an adjustment to the dismal Q1 with negative growth. The past 6 months the annualized growth is 1.2%, which is terrible.
inflation year to date might be 2.1%, but its increasing in the past month, as tariffs kick in.
but i see he quoted year to date inflation, but current gdp. lol. classic trump administration deception.

quoting him as some kind of credible source is silly.
 
gbg3 said:
Really good news today with this release. Hassett summed it up well.

"It's really one of the best GDP announcements or releases that you can imagine because there's blockbuster growth way above expectation, and there's also a real, real, almost collapse in inflation. It went down by about 1.5%, all the way down to 2.1%, which is the Fed's target," he said. "So to have high growth with low inflation and also high income growth, personal income growth was 3%, that's just like about a sweet spot for a GDP release."
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Hassett did his job .....good boy. Definitely worth a head pat.
 
maxparrish said:
A number of pinheads, Trump among them, don't get that the inflation rate increased, rather than decreased, last measured. The goal is 2 percent, but it continues to be too high. Trump is demanding the lowering of rates, which will almost certainly return us to a path of more inflation.

Of course, his demand is purely political. He is afraid his policies will reduce growth (as they will) and is willing to avoid that perception by restarting inflationary growth. The Feds, rightly, want to see inflation tamed before they pursue such policies.
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The current inflation rate is just over 2%.

If Powell intends to suffocate manufacturing and business growth, he's doing the right thing by keeping the prime rate high.

There's no reason for the Fed to keep the prime rate high.
 
Mycroft said:
The current inflation rate is just over 2%.

If Powell intends to suffocate manufacturing and business growth, he's doing the right thing by keeping the prime rate high.

There's no reason for the Fed to keep the prime rate high.
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he is "suffocating growth" but the trump administration just celebrated the great growth this quarter? lol.

well, the current annualized rate is closer to 3% than 2%, and tariff impacts will be increasing
 
From Barons:
The U.S. economy grew more than expected during the second quarter, bouncing back from a trade-driven decline at the start of the year. But even so, economic growth in the first half of 2025 was slower than in recent years.

Averaging the two quarters is 1.2%.
 
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