Trump Predicts Unprecedented 20% GDP Growth Rate
President Donald Trump has made headlines by predicting that the US economy could grow at an annualized rate as high as 20%. He argued that rapid expansion should not lead the Federal Reserve to raise interest rates. This comes from an Oval Office event where agreements were announced aimed at lowering prescription drug prices.
'We could have a GDP of 14, 15, 16 and 20,' Trump said. 'Success in growth does not cause inflation.'
According to the Bureau of Economic Analysis data, real gross domestic product has grown at an annualized rate of 20% or more in only one quarter since 1947. That occurred in the third quarter of 2020 when the economy rose at a 34.9% annualized rate as businesses reopened after widespread Covid-19 shutdowns.
The Federal Reserve held its benchmark rate at 3.5% to 3.75% in July, while inflation remained above its 2% target. Three policymakers dissented in favor of a quarter-point increase.