The United States economy expanded at a much faster pace than anticipated over the summer, according to official data released on Tuesday. The Commerce Department reported that Gross Domestic Product (GDP) – the broadest measure of economic output – grew at an annualised rate of 4.3% in the third quarter. This figure significantly outstripped expectations and marked the economy's most rapid growth in two years.
Strong Growth Amidst Political Claims
Officials attributed the surprisingly robust performance to notable increases in consumer spending, exports, and government expenditure. The data emerged against a backdrop of mixed economic signals and political commentary. Former President Donald Trump swiftly claimed credit for the growth, posting on his Truth Social platform that "the TARIFFS are responsible for the GREAT USA Economic Numbers." He further stated there was "NO INFLATION & GREAT NATIONAL SECURITY" and urged supporters to "Pray for the US Supreme Court," which is currently considering legal challenges to his administration's tariff policies.
This assertion comes as recent polls indicate a decline in public approval for Trump's management of the economy and his trade policies. The GDP report presents a complex economic snapshot, arriving alongside other significant political and legal developments from the same day.
Consumer Sentiment in Sustained Decline
Offsetting the positive GDP news was a continued downturn in how Americans feel about the economy. The Conference Board's closely monitored consumer confidence index fell in December for the fifth month in a row. This represents the longest consecutive period of decline since the 2008 financial crisis, suggesting underlying public anxiety despite strong headline growth figures.
This divergence between hard data and public sentiment will further complicate the task facing the Federal Reserve. The US central bank, which announced its third interest rate cut of the year earlier in December amid signs of a softening labour market, is now deeply divided on its future policy path. The strong GDP growth argues for a cautious approach to further easing, while weakening consumer confidence and a cooling jobs market suggest continued support may be needed.
A Day of Significant Political Developments
Tuesday 23rd December also saw several other major stories break concerning the Trump administration:
Epstein Files Reference Trump: A newly released batch of documents related to the late financier and convicted sex offender Jeffrey Epstein included multiple references to Donald Trump. One claim from a senior US attorney alleged Trump was on a flight in the 1990s with Epstein and a 20-year-old woman. The files note there is no indication the woman was a victim of any crime, and inclusion in the documents does not imply criminal wrongdoing.
Supreme Court Blocks National Guard Deployment: In a significant check on presidential power, the US Supreme Court refused a request from the Trump administration to deploy National Guard troops to the Chicago area. The ruling is seen as an important limitation on efforts to expand the use of the military for domestic purposes in jurisdictions led by Democratic politicians.
Abortion Ban for Veterans: The Department of Veterans Affairs is now prohibited from providing abortion services to veterans, even in cases of rape or incest. The ban follows a Department of Justice memo concluding last week that the practice was not legally sound.
In other news, former Republican Senator Ben Sasse announced he has been diagnosed with terminal stage-four pancreatic cancer, calling it a "death sentence." Reports also indicated a dramatic increase in violence against journalists in the US since Donald Trump returned to office.
