Trump Boasts US GDP Growth Could Reach 20% and Calls on the Fed to Cut Interest Rates

BlockBeats News, September 1st, President Trump of the United States stated that the U.S. GDP growth rate could reach 14%, 15%, 16%, or even 20%. Even with such high-speed economic growth, it should not be a reason for the Fed to raise interest rates. He said, "The success of growth will not cause inflation," and called for the U.S. to have "the lowest rates in the world."

In July, the U.S. PCE Price Index rose by 3.7% year-on-year, still above the Fed's 2% inflation target. The market currently generally expects the FOMC to potentially raise interest rates in September. Data from the U.S. Bureau of Economic Analysis shows that since 1947, the U.S.'s real GDP has only reached or exceeded an annualized quarterly growth rate of 20% once, which was the 34.9% rebound in the third quarter of 2020 after the pandemic lockdown ended.

In the second quarter of 2026, the real GDP annualized growth rate in the U.S. was 1.5%, lower than the 2.1% in the first quarter. Trump also stated that he highly respects Fed Chair Powell and believes that he will "do what needs to be done" on the rate issue. Powell has recently stated that if he cannot confirm a return of inflation to the 2% target, the Fed "will have work to do." (FXStreet)