GDP Gains Show Tariffs Not Hurting Prices Or Consumer Spending, Says Bessent

2025-08-28 03:14:06

(MENAFN- AsiaNet News)

U.S. Treasury Secretary Scott Bessent on Thursday credited President Donald Trump's“One Big Beautiful Bill” for driving stronger-than-expected second-quarter growth.

“The data shows tariffs are not weighing on prices or consumer spending,” Bessent said in a post on X. Gross domestic product (GDP) expanded at an annualized rate of 3.3% in Q2, according to a revised estimate from the Bureau of Economic Analysis. That's up from the prior 3% reading and above the Dow Jones forecast of 3.1%, according to data cited by MarketWatch.

Source: @SecScottBessent/X

The economy contracted at a 0.5% rate in the first quarter, marking the first GDP decline in three years. The Q2 revision reflected stronger consumer spending and business investment in equipment, according to Reuters.

It cited that final sales to private domestic purchasers rose at a revised 1.9% pace, unchanged from Q1 but higher than the initial 1.2% estimate. Consumer spending, the largest driver of growth, was lifted to 1.6% from 1.4%, while business outlays on intellectual property products jumped 12.8%, double the original estimate.

With the Federal Reserve focused on a softening labor market, economists expect the central bank to resume cutting rates next month. Chair Jerome Powell last week signaled a possible cut at the September meeting, citing rising labor market risks but warning inflation pressures remain. Meanwhile, Senate Republicans are moving to confirm Trump nominee Stephen Miran to the Fed board before the meeting.

U.S. equities were mixed in midday trade on Thursday. The SPDR S & P 500 ETF (SPY) was up 0.03%, the SPDR Dow Jones Industrial Average ETF (DIA) slipped 0.09%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) moved 0.26% higher. Retail sentiment around QQQ on Stocktwits improved to 'neutral' from 'bearish' territory over the past day.Read also: Toncoin Gets Listed On Robinhood, Sends TON Price Into The Green

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