JUST IN: Trump Agenda Vindicated As Economy Explodes In Q2

America’s economists are ebullient about new economic numbers released Wednesday showing that the country’s economy grew at a healthy clip over the past quarter, surpassing expectations and vindicating President Donald Trump’s approach to ongoing trade negotiations.

Gross domestic product, or the combined value of all goods and services produced by the U.S., rose by 3% in the second quarter, according to news out of the U.S. Bureau of Labor Statistics. That figure is adjusted for seasonal and inflation headwinds.

Labor economists surveyed by the Wall Street Journal had predicted growth of 2.3%, underscoring Trump’s ability to outpace already optimistic outlooks about his first six months, as prognosticators increasingly discount pessimism of his tariffs.

During the first quarter, the country’s GDP contracted 0.5% as businesses stockpiled materials in advance of looming tariffs, which began at the start of April. Today, fears about empty shelves and shuttered supply chains have largely run their course.

Despite that contraction, the country’s economy continued to grow at a smaller rate of 1.2% during the first quarter. That figure has now been turbocharged by rising consumer sentiment and a willingness to spend.

Beth Ann Bovino, chief economist with U.S. Bank, said particular sectors remain vulnerable as President Trump works to reach tariff deals with a host of countries that corner the market on specific imports to the U.S.

“Businesses are very cautious—they don’t know the road map and so they’re driving in the right lane very slowly,” she told the outlet.

Trump took to Truth Social to celebrate the news while reiterating his call for Federal Reserve Chair Jerome Powell to lower interest rates.

“No Inflation! Let people buy, and refinance, their homes!” he said.

Consumer spending, which picked up at 1.4%, has largely been the driver of economic growth while businesses remain hesitant to expand their footprints. The housing sector, which is constrained by both a lack of supply and high prices, remains a drag on the economy.

U.S. stock indices were up slightly on news of the economic figures.

Federal Reserve officials have signaled that their meeting on Wednesday will not result in a change to interest rates. They have cited the solid economy and elevated inflation as reasons to leave rates unchanged while assessing the long-term impacts of President Trump’s tariffs.

The Labor Department later this week will release its monthly jobs report. A survey of economists by the Journal predicts that U.S. businesses will add an additional 100,000 jobs, down from 147,000 in June.

President Trump has made tariffs a cornerstone of his economic agenda and pleaded with Americans for patience as he works to secure more deals during his first year in office. He has promised that the effects will result in lower prices for household goods like food and energy, which rose 2.5% in the second quarter, above the 2% target that the Fed would like to see.