The U.S. economy under President Donald Trump grew at an annualized rate of 3% in the second quarter of 2025, according to Commerce Department data released Wednesday—beating forecasts and signaling strong economic momentum. The figure exceeds the Dow Jones estimate of 2.3% and reverses a 0.5% decline recorded in the first quarter.
From April through June, the economy showed renewed strength in consumer activity. Consumer spending rose by 1.4%, helping to drive overall growth. However, exports declined by 1.8% over the same period, reflecting ongoing trade adjustments amid Trump’s renewed tariff and trade reform efforts.
Heather Long, chief economist at Navy Federal Credit Union, described the U.S. economy as “resilient,” saying consumers are holding steady while waiting for final trade agreements. President Trump’s “Liberation Day” tariff rollout in early April was met with skepticism, but the second quarter rebound appears to vindicate his strategy.
Inflation also showed signs of continued decline. The personal consumption expenditures (PCE) price index—a key measure used by the Federal Reserve—rose just 2.1%, near the Fed’s 2% target. Core PCE inflation, which excludes volatile food and energy costs, climbed by 2.5%, down from 3.5% in the first quarter.
The Federal Reserve is expected to maintain its benchmark interest rate in the 4.25% to 4.5% range, where it has remained since December. With inflation cooling and economic growth rising, pressure is building on the Fed to consider future rate cuts.
President Trump responded to the report on Truth Social, writing: “2Q GDP JUST OUT: 3%, WAY BETTER THAN EXPECTED! ‘Too Late’ MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!”
The stronger-than-expected GDP growth reinforces confidence in Trump’s economic policies and may further bolster efforts to stimulate American manufacturing and consumer activity through targeted tariffs and deregulation.
