3% Growth? Experts Didn’t See This Coming

Benzinga

Trump’s new tariffs just hit — and yet, the U.S. economy grew 3% in Q2. That’s way above the expected 2.3%, especially after last quarter’s contraction. So what happened? Imports fell over 30%, consumer spending bounced back, and somehow GDP surged. But with residential investment falling and inflation still high, even Trump is demanding the Fed cut rates. Is this true economic strength… or a warning sign?

Transcript

00:00Trump's tariffs just hit, and the economy still grew 3%.

00:03How is that even possible?

00:05Everyone expected a slowdown, experts were calling for just 2.3% growth, and last quarter

00:10we actually shrank.

00:12But then something weird happened.

00:13Imports dropped over 30%, and consumer spending bounced back.

00:17Trump's tariff war was supposed to hurt growth, but instead, Q2 GDP blew past expectations.

00:23It's not all rosy though, residential investment dropped, and inflation is still hovering above

00:27the Fed's target.

00:29Even Trump is shouting at the Fed saying, cut rates now.

00:32So is this real resilience or the calm before the crash?

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