Economic growth in the United States accelerates in the second quarter of the year, driven by Trump's tariff policies, resulting in a robust 3% increase in the country's GDP.
The US economy experienced a significant boost in the second quarter of 2025, with a robust 3.0% annualized GDP growth. This economic rebound was largely driven by a sharp drop in imports and a noticeable rise in consumer spending.
President Donald Trump has urged the Federal Reserve to reinforce economic momentum, as the central bank faces pressure to act due to accelerating growth, easing inflation, and a steadying labor market. The Federal Reserve Chairman, nicknamed 'Too Late' by President Trump, is Jerome Powell.
The private sector added 104,000 jobs in July, according to the latest ADP report. Economists anticipate around 100,000 new jobs and a slight increase in the unemployment rate to 4.2% in the Bureau of Labour Statistics' official July employment report, which is set to be released later this week.
Inflationary pressures eased in Q2, with the price index for gross domestic purchases rising 1.9%. However, real final sales to private domestic purchasers rose 1.2% in Q2, slightly lower than Q1's 1.9%. Wages grew at an annual rate of 4.4% in July.
President Trump's tariff-driven policy appears to have delivered a meaningful boost to short-term US economic growth. Yet, investment spending fell across buildings, equipment, and intellectual property in Q2. Exports dipped in Q2, while imports fell sharply, improving the US trade balance and boosting GDP.
Across the Atlantic, Britain's decision to leave the European Union has given it a critical edge in avoiding tariff troubles with the US, according to economists. Despite a mere 0.1% growth in the final quarter of 2024, the UK GDP per capita, the key measure of economic well-being per person, shows a worrying trend of Britons effectively getting poorer.
As the US economy continues to evolve, the next major signal will come from the Bureau of Labour Statistics' July employment report. President Trump's message regarding the economy remains optimistic: 'America is WINNING again.'
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