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Trump says U.S. growth could hit 20%, a rate seen once since WWII
cnbc.com • • business
Key Points:
- President Donald Trump claimed the U.S. economy could grow at rates as high as 20%, asserting that such growth should not trigger Federal Reserve interest rate hikes.
- Trump argued that economic success and rapid growth do not cause inflation, advocating for lower borrowing costs despite the Fed's ongoing inflation concerns.
- The Federal Reserve has kept its benchmark rate steady but is widely expected to raise rates in September to combat inflation above the 2% target.
- Historically, U.S. GDP growth rates near 20% are extremely rare, with the only instance being a 34.9% annualized surge in Q3 2020 following pandemic shutdowns.
- Current economic growth is much slower, with Q2 2026 GDP increasing at just 1.5%, contrasting sharply with the unprecedented growth rates Trump cited.
