U.S. GDP grew 2.1 percent in the second quarter as tariffs and a broader global slowdown weighed on the U.S. economy. The slowdown, from 3.1 percent in the first quarter, didn’t come unexpectedly, however, and actually wasn’t as bad as expected. Wall Street had predicted 2.0 percent growth for the second quarter, but strong consumer and government spending partly offset a deep slump in business investment as well as weak export numbers.
President Trump described the preliminary result as reported by the BEA
as “not bad considering we have the very heavy weight of the Federal Reserve anchor wrapped around our neck”, referring to the Fed’s previous unwillingness to cut the federal funds rate, which it is widely expected to do this week for the first time since the Great Recession, which was followed by nine rate hikes.