Using his “Mr Too Late” nickname for Federal Reserve chair Powell, Trump wrote on social media that the economic figure was “WAY BETTER THAN EXPECTED! ‘Too Late’ MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!”.
But analysts said the rebound in growth was likely to bolster arguments that the bank could afford to wait to cut interest rates.
Bernard Yaros, lead US economist at Oxford Economics, said: “The economy’s resilience will allow the Federal Reserve to hold still and assess the unfolding tariff impact on consumer prices before pivoting to interest rates cuts in December.”
A separate gauge that tracks consumer spending and investment slowed from 1.9% to 1.2%, the Commerce Department said.
Some economists have argued that this measure is a more helpful indicator, given the fluctuations in trade.
“Beneath the topline figure, the economy is switching to a lower gear but not going in reverse,” said Mr Yaros.