The US economy has grown from 3% in the quarter, which is better than expected, even if Trump’s tariffs hit

In the second quarter, the US economy grew up much stronger than the pace, with the help of turning in the trade balance and the updated consumer strength, the trade department reports on Wednesday.

Gross domestic productThe amount of goods and services across the wide US economy jumped 3% in April to June, according to data adjusted for seasonality and inflation.

This headed the Dow Jones estimate by 2.3% and helped reduce the 0.5% decrease in the first quarter, which mainly occurred from the huge fall of imports, which is deducted from the total, as well as the weak consumer costs against the background of tariff problems.

Financial markets have little reacted to the report, with Futures for the stock index Mixed and the Treasury gives above.

“The word summer for the economy is” elastic “,” said Hisher Long, Chief Economist of the Federal Credit Union of the Navy. “The consumer is hanging there, but still on the border until trade transactions are made.”

The period reported on Wednesday includes the president Donald TrumpThe announcement of the “S Liberation” tariffs on April 2. Imports in the first quarter jumped when the companies tried to outperform the ad.

Over the past three months, Trump has been engaged in numerous seagull rounds and often intensive negotiations with US trading partners, but nevertheless coincided with the muted but solid economic growth.

Negotiations largely led to the tariffs much higher, where they were at the beginning of the year, but not as serious as originally offered.

In the second quarter, consumer costs increased by 1.4%, better than 0.5% over the previous period. While exports during this period decreased by 1.8%, imports decreased by 30.3%, changing 37.9%in 1 quarter.

The GDP Party demonstrated the strength in the key spheres of the economy, as well as the evidence that inflation is watering, although it is not eradicated.

Personal consumption price index, the main metric of inflation of the federal reserve system, showed an increase of 2.1% for the quarter, just above 2% of the target of the Central Bank. The main inflation of PCE, which the Fed considers the best caliber for longer trends as it eliminates volatile food and energy prices, increased by 2.5%. The corresponding figures for the first quarter amounted to 3.7% and 3.5%.

The Fed will meet later on Wednesday and is expected to resist its key borrowing level in the range of 4.25% -4.5%, where it has been since December.

Trump responded to the GDP report with fresh demand for the federal reserve system to reduce interest rates.

“2Q GDP is simple: 3%, much better than expected!” Trump posted the truth social. Using your nickname for the chair -stirring Jerom PowellThe president added “too late”, now he should reduce the rate. No inflation! Let people buy and refinance, their houses! “

The report had some signs of slowing.

The final sales of private domestic buyers, the Metric, which Fed closely monitors the demand indicator, increased by only 1.2%, which is 1 by 1.9% in 1 quarter and the slowest income after the fourth quarter of 2022.

Trump complains about high mortgage rates that held back the housing market. Investments in living quarters decreased by 4.6% in the quarter.