NEW YORK (NewsNation) — The U.S. economy grew more than previously reported in the second quarter, a new government report shows. Thursday’s revised numbers say it grew at 3.3%, which is up from the initial estimate of 3.0%.
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NEW YORK (NewsNation) — The second estimate of the U.S. gross domestic product report will be released Thursday, offering a fresh look at the country’s economic growth as President Donald Trump’s feud with the Federal Reserve intensifies.
Global markets are watching closely. The U.S. economy and those of countries around the world, such as India, are being tested this week by Trump’s aggressive tariff agenda.
The report will indicate whether the initial second-quarter estimate, which suggested growth despite Trump’s tariffs, holds up. The GDP shrank 0.5% in the first quarter but bounced back in the spring, growing a stronger-than-expected 3% from April through June.
Labor Day gas prices lowest since 2020
50% tariffs on India go into effect
India is facing sharper fallout. Trump’s 50% tariff on more than $80 billion worth of Indian goods, from electronics and jewelry to medical supplies, went into effect this week.
Since the U.S. consumes 20% of India’s exports, analysts have predicted the impact on India’s economy will be significantly greater than the impact on the United States.
American import-dependent industries have warned that higher costs could be passed on to consumers.
Trump wants Fed to cut interest rates
For the Fed, the key question is whether tariffs will drive inflation higher or whether the economy will continue to demonstrate its ability to handle them.
The answer could shape whether interest rates are cut, a move that influences borrowing costs, such as credit card rates, car loans and mortgage rates, as well as employers’ willingness to hire.
Trump, however, is demanding the Fed cut interest rates aggressively — but the Fed has been hesitant, sparking frustration and a series of attacks from the president.
Trump has pressured Fed chair Jerome Powell and even threatened to fire him, though he lacks the authority to do so. Trump can, however, replace Fed governors as their terms expire.
To force a rate cut, Trump needs a majority of the seven governors — two voted for reductions at the last meeting and one recently resigned, leaving him two seats short of a majority.
Will Lisa Cook win a legal battle against Trump administration?
Trump targets Fed governor for seat
Federal Reserve Governor Lisa Cook was recently accused by the Trump administration of mortgage fraud for listing two homes as primary residences in 2021.
Trump announced plans to fire her, but Cook said she plans to sue, arguing the president cannot remove a Fed governor during their term.
If Trump attempts to remove Cook, it would mark the first time in U.S. history a president has tried to fire a Fed governor or chair.
