Trump’s merely “okay” economy
This story appeared in Today, Explained, a daily newsletter that helps you understand the most compelling news and stories of the day. The American economy lost some steam this spring as the war in Iran pushed up energy prices. But don’t let that slower growth, or the downer vibes, fool you: The economy is actually…doing all […]
The American economy experienced a slowdown in spring due to the Iran war, which increased energy prices. However, the US Bureau of Economic Analysis reported that the economy grew at an annual rate of 1.5 percent in April, May, and June, which is slower than expected but not as bad as initially feared. Despite inflation remaining above the Federal Reserve's 2 percent target, consumer and business spending have been surprisingly strong.
Imports, particularly semiconductors and AI-related gear, pulled the economy down on paper. Real final sales to private domestic purchasers, a cleaner measure of underlying demand, showed stronger growth. Economist views suggest the economy is "doing okay." President Donald Trump's tariffs have been a significant factor, with an estimated $1,100 annual cost to the average US household.
While the economy may have been even better without Trump's policies, the current situation is still performing well.
Written by urgent.news from Vox's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
