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.
Every labor department job claim for the last 4 years was revised down every month after the Biden administration was given praise from the entirety leftist compliant media for was really nearly zero job growth.
The only “growth “ came by workers restored post Covid 19 and illegals given a socialist hammer and sickle job.
The collapse in 2008 came directly from the lefts “creative financing so every one gets a home” mortgage institution meltdown. Followed by George w Shrubs trillion dollar bail out followed by Obamas not shovel ready quantitative easing dumping tens of billions monthly into market stimulus and nearly zero growth was the real cash for clunkers.
From 2016 to 2020 growth was back in economics and real authentic job creation that marked the Trump expansion until the Chinese virus attack lockdown economic shutdown.
Now here we are today and growing up again with real authentic American fair market values that will last.
More evidence to cut government spending, reducing the deficit and interest rates, and making America great in the future.
The Marxist liberal Democrats will find a deep State judge to block these economic policies because they are beneficial to the country and they make Donald Trump look good. Both things that Democrats cannot stand their entire goal is to burn Donald Trump and this country to the ground they will stop at nothing to destroy both
And Schumer et al keep scoffing that Tariffs don’t work. Pelosi has gotten rich on insider trading and couldn’t explain away that fact. It was her husband, yes Nancy anf you hadn’t given him the information. You are worth 413 million dollars. President Trump made the people richer with his policies. The democrats don’t want the citizens to be prosperous. Powell is in cahoots with them. Playing the what if game. They just can’t accept Trump’s successes. Employment is up, wages are up, law and order is returning to our inner cities by deporting the criminal element that Biden allowed into this country unchecked, and we tax payers had to support. At the same time these same migrants told they were only here to get rich. They would not assimilate, they were only here to eat off the land and then go back. Because America was no better than the country they came from. Trump is right send them all back they broke the law by coming here and by their own admission they are here to destroy America. We now know the real reason Biden allowed millions of people into this country, to destroy America. These figures show that plan also is not working.
If The Fed doesn’t cut rates and it causes another housing meltdown like 2008, they’ll blame Trump! Its ridiculous that Powell will not lower interest rates to help Americans sell and buy homes, refinance mortgages..its almost like he HATES the people of this country as much as he apparently hates President Trump. I sure hope the country can withstand having him in charge until May of 2026.
only one party is American Constitution values (capitalism); the other has been uncovered scamocrats.
Oh oh… Makes one wonder what the Rats will do to to negate this positive!
Conservative governance and economic atmosphere conducive to business will lead to strong economy and prosperity. Spending will only lead to more spending that will end up in disaster as we all witnessed. One can only look at the potential candidates for POTUS on the “Democrat” side and see where that would lead. That good 30% of people still would vote for them is scary, should they not be required to pass a test of mental capacity?Thank God for Trump and may people see the reality, which is different from the dems. pie in the sky.
President Trump is making all right moves!
GDP has surged to 3%, the tariffs are working, people that should not be here are leaving, more police in our cities will make it safer, etc. etc. Things will kept getting better for the American people. And it has only been 6 months. Great!!
Now we hold our breaths waiting to see what the Rats will do to negate this.
Trump needs to fire the head of the Fed if he doesn’t lower the interest rates now! If that Leftist creep won’t lower the rates now he never will under any circumstance!
Been so since Trump took office
Expand DOGE
END Earmarks on budget alone
OK, but this was not my most pressing issue. I voted for Trump for one reason only: Protecting kids. The files, Mr. President, the files…
So much positive news the left is falling all over themselves to deny it. Watch out for the next 2 quarters they say. The what if syndrome is alive and well in America. Only not in the America of Trump. Thank you president Trump. Bringing positivity and prosperity and safety back into our lives. Wait till Russia gate is fully exposed.
https://www.cnbc.com/2025/08/01/trump-erika-mcentarfer-jobs-report-fired.html
North Korea anybody?
Secretary Bessant stated that Trump child fund is a back door to privatize Social Security. AARP sent out message today that they are against this move & so what is AMAC stand on this issue. And does anyone else remember Trump plan in 2019 to move the SS Trust Fund into the general fund? This Trust Fund had surplus of +$2 Trillion in 2024 & Cngress needs to act to keep this fund going for another 75 years & quit ignoring the problem.
Until inflation gets under 2 percent, leave interest rate where it is. Prices still to high and going up cuz of tariffs, which are taxes! Love economic growth but let’s not jump to fast too far! We still having looming debt that needs to be dealt with too!
NO ONE that has been in the real world out here believes that inflation is running at 3.7% Just like with the promises to release the Epstein Files, everything we hear from our marvelous government are LIES
If you believe those numbers I have ocean-front property in Kansas to sell you. Groceries are not cheaper, gas is not cheaper, insurance is sky high, and layoffs were announced earlier this month where thousands of jobs were lost. Microsoft laid of thousands and then applied for work visas for foreigners to fill those same jobs.
Trump is inviting all this foreign investment into the US which means they will start demanding concessions for their business and wanting laws changed to cater to them. He’s leading us down the path to foreign interference in this country which is never good.