Trump Enraged over United States GDP Figures
The Gross Domestic Product for the United States climbed for the last quarter but not as much as expected.
Quick overview
- In 2025, the U.S. GDP rose by only 1.4%, significantly lower than the expected 2.5%, largely due to sluggish consumer spending.
- President Trump attributed the disappointing GDP figures to the extended government shutdown and criticized Democrats and Federal Reserve Chairman Jerome Powell.
- Consumer spending declined as many government employees were unpaid during the shutdown, impacting economic activity during a crucial holiday season.
- The government shutdown is estimated to have cost the GDP around 1 point, with Trump claiming it could have been at least 2 points lower due to the Fed's high interest rates.
For 2025, the United States’ gross domestic product rose by 1.4%, and President Donald Trump posted to Truth Social that it would have been higher if not for Democrats causing a government shutdown.
The Dow Jones expected a GDP of 2.5% for the United States, but slowing consumer spending resulted in a much lower figure and growth of just 1.4%. Trump blames it on the extended government shutdown- the longest in United States history.
He blasted the Democrats and Federal Reserve Chairman Jerome Powell over on social media, attributing the lower than expected GDP to their actions. Trump has been hounding the Fed and Powell in particular to issue more interest rate cuts since he took back the office of the presidency.
Economic Growth Data Shows Slowed Consumer Spending
This week saw the release of 4th quarter Gross Domestic Product data showing an expanding economy. The numbers were well below what Wall Street predicted they would be, however, disappointing many investors. The 10-year U.S. Treasury yields moved slightly higher to 4.09% and the U.S Dollar ticked upward 0.01%.
One of the key reasons why the GDP numbers fell short of expectations was sluggish consumer spending. U.S. residents spent less during the extensive government shutdown since the event meant that many government employees were not receiving pay checks. This happened during an important spending period just ahead of the winter holidays.
Investments faltered as well, and the stock market and crypto markets both saw sharp declines during the government shutdown and throughout November and December last year. Inflation data demonstrated that consumers are still affected by high prices, and that is partly why Walmart (WMT) performed so well in its most recent quarter as consumers sought out low cost options for essentials.
Government spending fell off sharply in the last quarter, and at the same time consumer spending became slower. The Commerce Department says that the shutdown could have cost the GDP total about 1 point. President Trump was far quicker to place the blame and said that the shutdown cost the United States GDP “at least two points.” He also blamed the Fed for high interest rates, pointing out Powell specifically for the Fed’s policies.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Save