US Economy Shrinks Under Trump?
The U.S. economy took a surprise hit in early 2025, with fresh data showing the nation’s gross domestic product (GDP) fell more than previously estimated. According to the latest Commerce Department revision, GDP shrank by 0.5% on an annualized basis in the first quarter—worse than the earlier figure of 0.2%.
This news sent shockwaves through economic circles and raised fresh concerns about the direction of the Trump-era recovery.
🇺🇸 Consumer Spending Stalls Amid Economic Headwinds
At the heart of the GDP slump is a sharp drop in consumer spending, especially in transportation and recreational services. These are sectors many older Americans rely on—whether for travel, commuting, or lifestyle in retirement.
Adding pressure, a spike in imports—ahead of President Trump’s newly announced “America First” tariff measures—further dragged the economy down. Since imports subtract from GDP, this pre-tariff buying spree played a key role in the contraction.
Private sector investment also underperformed, knocking 0.6 percentage points off earlier growth estimates.
🏛️ Federal Reserve Hesitates as Growth Slows
Despite the weakening economy, the Federal Reserve is holding off on interest rate cuts, citing fears of inflation tied to new trade policies. The Fed now predicts just 1.4% growth for 2025, down from 1.7% projected in March—matching the World Bank’s gloomy forecast.
But for many Americans nearing or in retirement, this raises concerns about the cost of living, energy prices, and the future of their savings.
Fed Chair Jerome Powell testified before Congress, saying the central bank will “wait and see” before changing rates. Powell wants to observe how tariffs affect the supply chain and consumer prices.
🔥 Trump Slams Fed for Delaying Rate Cuts
President Trump isn’t staying quiet. On Truth Social, he delivered a scathing critique of the Fed, calling out Powell for being slow to act while other countries are aggressively cutting rates to support their economies.
President Trump criticized Fed Chair Jerome Powell, nicknaming him “Too Late Jerome,” and noted that while Europe has already implemented ten rate cuts, the U.S. has yet to see a single one. Powell, he added, would be appearing before Congress to explain his continued refusal to lower interest rates.
Trump argued that with low inflation and a strong economy, interest rates should be cut by at least two to three percentage points. He claimed such a move could save the U.S. over $800 billion annually, calling it a potential game-changer for the nation.
Trump is also warning that high interest rates worsen the national debt crisis, making it more expensive for taxpayers to service trillions in obligations.
📈 Inflation Creeps Up, But Still Under Control
While inflation ticked slightly higher—from 2.3% to 2.4% year-over-year—it remains far below the record highs seen during the Biden years. Still, rising costs for food, transportation, and utilities remain a top concern, especially for older Americans living on fixed incomes.
💬 What This Means for Conservative Americans
For patriotic Americans who support President Trump’s focus on strong trade, debt reduction, and energy independence, this latest GDP report is both a warning and a rallying cry.
If the Fed continues to drag its feet, Trump argues, we risk missing a critical window to boost the economy, protect seniors’ retirement accounts, and restore U.S. fiscal strength.
As 2025 unfolds, the clash between Powell’s caution and Trump’s pro-growth urgency will shape the financial health of the nation—and the wallets of millions of conservative families.
