American gross domestic product (GDP) jumped 3% for the second quarter, significantly better than the 2.3% estimate. U.S. President Donald Trump responded to the GDP report with a fresh demand for the Federal Reserve to lower interest rates.
The U.S. economy grew at a much stronger-than-expected pace in the second quarter, powered by a turnaround in the trade balance and renewed consumer strength, the Commerce Department reported Wednesday.
Gross domestic product, a sum of goods and services activity across the sprawling U.S. economy, jumped 3% for the April through June period, according to figures adjusted for seasonality and inflation.
That topped the Dow Jones estimate for 2.3%…
“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.”
Consumer spending rose 1.4% in the second quarter, better than the 0.5% in the prior period.
The Fed meets later Wednesday and is expected to hold its key overnight borrowing rate steady in a 4.25%-4.5% range, where it has been since December.
Trump responded to the GDP report with a fresh demand for the Federal Reserve to lower interest rates.
President Trump via Truth Social, July 30, 2025 at 8:38am EDT:
2Q GDP JUST OUT: 3%, WAY BETTER THAN EXPECTED! “Too Late” [Federal Reserve Chair Jerome Powell] MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!
MacDailyNews Note: In fiscal year 2024, it’s estimated that roughly 35% of Apple’s total revenue, or about $136.86 billion, came from the U.S. market. In terms of revenue, America is Apple’s single largest market compared to other regions like Europe (24%) or Greater China (18%).
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