2% GDP Hit Trump Blasts Shutdowns, Slams Powell
Donald Trump warns the Democrat shutdown slashed GDP by 2%, calls for lower interest rates, and renews criticism of Federal Reserve policy.
Washington, D.C. — President Donald J. Trump on Tuesday sharply criticized Democrats over renewed shutdown threats, warning that previous government shutdowns cost the U.S. economy at least two full percentage points of GDP.
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In a forceful statement, Trump said the earlier shutdown inflicted lasting economic damage and accused Democrats of attempting a “mini version” of the same tactic once again.
“The Democrat Shutdown cost the U.S.A. at least two points in GDP,” Trump said. “That’s why they are doing it again. No Shutdowns!”
Call for Lower Interest Rates
Trump also renewed his push for lower interest rates, arguing that monetary policy must align with economic growth and stability. He sharply criticized Federal Reserve Chair Jerome Powell, repeating his long-standing frustration with the central bank’s leadership.
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“LOWER INTEREST RATES,” Trump added, calling Powell “too late” and “the worst” in handling economic timing.
Economic Stakes Rising
Economists widely agree that government shutdowns disrupt federal operations, delay public services, and weigh on consumer confidence. Trump emphasized that preventing shutdowns is critical as the U.S. economy navigates inflation pressures, global uncertainty, and tight financial conditions.
The President framed his remarks as a warning against using shutdowns as a political weapon, arguing that such actions hurt workers, businesses, and long-term economic momentum.
Ongoing Debate
The comments reignite debate over fiscal responsibility, Federal Reserve independence, and the balance between government spending and economic growth. As budget negotiations continue, the prospect of another shutdown remains a major concern on Wall Street and Main Street alike.
With GDP growth, interest rates, and federal funding all in focus, Trump’s remarks are likely to intensify political and economic tensions in the weeks ahead.
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