The US economy grew at an annualized rate of 3% in the second quarter, beating expectations and rebounding from a previous contraction triggered by President Donald Trump’s tariff announcement.
Wednesday’s rise in GDP was largely driven by a decline in imports, reversing the drop in the first quarter, when companies rushed to stock up on goods ahead of Trump’s “Liberation Day” tariff deadline.
The reading suggests that the US economy, so far, seems to have largely averted a tariff-fueled slowdown, while cumulatively, data from the first six months tells “a more consistent story of anemic, though positive, economic growth,” The New York Times wrote.
Trump seized on the latest data to renew pressure on Fed Chair Jerome Powell to slash interest rates — the central bank, however, has adopted a cautious approach and is expected to hold rates steady Wednesday.
— Natasha Bracken
