U.S. Economic Growth: What Powell's Speech Reveals
Jerome Powell, the Chair of the Federal Reserve, highlighted a slowdown in U.S. economic growth despite a 3% GDP rise in Q2 2025. He pointed out that while the second quarter's growth looks strong, the first half of the year showed only a 1.2% increase. This deceleration is largely due to reduced consumer spending. President Trump, however, celebrated the 3% growth, urging Powell to lower interest rates. Powell emphasized that inflation is slightly above 2%, and while the current policy rate is somewhat restrictive, the economy doesn't seem overly constrained. Risks to the labor market remain a concern.
