Trump blamed Democrats and Powell for slowing economic growth

US President Donald Trump on Friday blamed Democrats, the record shutdown and Fed Chairman Jerome Powell for lower than expected GDP growth in the fourth quarter and the entire year of 2025. Growth in the last quarter was 1.4%, even though Trump announced over 5% in January. result.

“The democratic shutdown cost the US at least two points of GDP,” President Donald Trump wrote on the Truth Social platform on Friday, before the publication of official economic growth data. He also attacked Federal Reserve Chairman Jerome Powell, calling him “the worst” and calling for lower interest rates.

Trump responded in this way to data published by the Bureau of Economic Analysis indicating a slowdown in economic growth from 4.4 percent. in the third quarter to 1.4 percent in fourth place on an annual basis. This result is clearly weaker than economists' expectations of 2.5-3.0 percent.

These data are in clear contradiction to President Trump's statements during this year's economic forum in Davos. Speaking there in mid-January, Trump argued that the forecast for GDP growth in the fourth quarter was 5.4%. – “far more than anyone other than me and a few others had anticipated.”

Back in November, presidential adviser Kevin Hassett estimated that the record-long 43-day shutdown would reduce economic growth by more than 1 point. percentage.

Overall GDP growth for the entire year was 2.2 percent, which is better than the forecasts presented by the International Monetary Fund at the beginning of the year, but worse than expected by economists polled by the Wall Street Journal (2.5 percent). This is also a worse result than in 2024, when the increase was 2.8%.

The December reading of the PCE inflation index, the main index monitored by the central bank in the context of interest rate decisions, also brought unfavorable data for the president. Year-over-year core PCE increased from 2.8 to 3 percent in December. During the month, prices increased by 0.4%, compared to an increase of 0.2%. a month earlier. According to “WSJ”, these data may translate into a longer deceleration in interest rate cuts and even the possibility of their increase.

From Washington Oskar Górzyński (PAP)

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