Trump Expects 4% U.S. Q3 Growth Rate... "No Interest Rate Hikes"

Remarks at the APEC Summit in Gyeongju
"Inflation Drops to 2.7%"

On October 29, President Donald Trump of the United States stated that he expects the U.S. economic growth rate for the third quarter of this year to reach 4%. He also added that there will be no interest rate hikes in the future due to concerns over inflation.

Donald Trump, President of the United States, is delivering a speech at the '2025 Asia-Pacific Economic Cooperation CEO Summit (APEC CEO SUMMIT)' held on the 29th at the Gyeongju Arts Center in Gyeongbuk. Photo by Yonhap News Agency

During a special address at the Asia-Pacific Economic Cooperation (APEC) CEO Summit held in Gyeongju on the same day, President Trump commented on the U.S. gross domestic product (GDP) growth rate for the second quarter, saying, "It recorded 3.8%, which is three to four times higher than what many people had expected."

He continued, "Many expected a much lower figure, around 1% or 1.5%, but we are very close to 4%. In the next quarter (the third quarter), we will reach that level (4%) or even exceed it."

Previously, the U.S. Bureau of Economic Analysis (BEA) announced that the real GDP growth rate for the second quarter of this year was 3.8% on an annualized basis.

President Trump stated, "The inflation we inherited was the worst in history, but now it has dropped to a very low level of 2.7% and will decrease a bit more," adding, "We are approaching an almost perfect number."

He also said, "Wages for workers are rising at the fastest pace in over 60 years," and added, "At the same time, energy prices and food prices are falling, and mortgage rates have also declined."

Regarding Jerome Powell, Chair of the Federal Reserve (Fed), President Trump criticized him as "incompetent," saying, "He will be leaving in the coming months, and I will appoint a new person as Fed Chair whom everyone will like."

He further emphasized, "Without the United States, there would be no other countries, so the U.S. should have the lowest interest rates in the world," and added, "There will be no more cases where the Fed raises interest rates just because there are concerns about inflation three years from now."

President Trump has consistently criticized the Fed for not being proactive in lowering the benchmark interest rate due to concerns over inflation. He has previously stated that he could announce the nominee for the next Fed Chair, who will succeed Chair Powell when his term ends next spring, before the end of this year.