U.S. GDP grew by 3% in the second quarter; Trump pushes for Federal Reserve rate cuts

U.S. GDP growth jumped to 3% in the second quarter, and Trump is boasting and demanding the Federal Reserve to cut interest rates. However, when looking at the detailed data of GDP growth, the fundamental reason for the increase in this quarter's GDP growth is the sharp decline in imports caused by Trump's tariffs. The reduction in imports led to an increase in net exports, which contributed to the GDP growth. Meanwhile, investment declined significantly, reflecting weak business confidence and capital spending.

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Trump posted: "Second-quarter GDP data just came out: 3%, far exceeding expectations! 'The Fed is too late' now must cut interest rates. No inflation! Let people buy houses and refinance!"

Original: https://www.toutiao.com/article/1839081777618185/

Statement: This article represents the views of the author himself.