Washington, D.C. — President Donald Trump offered a glimpse at disappointing economic data on Friday, foreshadowing sluggish growth figures roughly 40 minutes ahead of their official release. The president took to social media to criticize Federal Reserve Chair Jerome Powell while reiterating his call for lower interest rates.
In a post on Truth Social, Trump, appearing to have misspelled his criticism of Powell, wrote early in the morning, “LOWER INTEREST RATES. ‘Two Late’ Powell is the WORST!!!” The post coincided with the Commerce Department’s schedule to unveil the fourth-quarter GDP results, which ultimately showed a significant slowdown in economic growth.
When the official data was disclosed at 8:30 a.m. ET, it confirmed Trump’s grim predictions. The economy expanded at an annualized rate of just 1.4% in the final quarter of 2025, a stark decline from the previous quarter’s 4.4% growth and far below analysts’ projections of 2.5% to 3%. This latest figure marked a 3-percentage-point drop compared to the prior quarter, adding pressure on the administration’s economic narrative.
The president also pointed fingers at Democratic policies, claiming that the lengthy government shutdown last fall cost the U.S. an estimated two points in GDP, while warning against the potential for future funding interruptions. This shutdown, lasting 43 days from October to mid-November, has been cited as a major contributor to the economic slowdown. The Bureau of Economic Analysis attributed the impasse to approximately a 1-percentage-point deduction in real GDP growth, and the Congressional Budget Office suggested it could have diminished annualized growth by as much as 2 points.
Despite the government shutdown’s significant role, it does not fully account for the weakening economy. Consumer spending, an essential driver of growth, rose only 2.4% during the fourth quarter—down from 3.5% in the third quarter—indicating that households are under increasing financial strain.
Market analysts, including Joel Kan from the Mortgage Bankers Association, noted that while higher-income households continue to support spending, lower-income Americans are feeling the pinch due to rising costs and accumulated debt. This discontent is reflected in the broader economy, as a separate report indicated that inflation increased in December, with the PCE price index rising 2.9% year-on-year, surpassing the Federal Reserve’s 2% target.
These economic challenges arrive just as Trump faces a declining approval rating, which recently slipped to 38%, and a drop in consumer confidence to an all-time low since mid-2014. Over the previous year, the economy managed a growth rate of only 2.2%, down from 2.8% in 2024, with employers adding merely 181,000 jobs—marking the worst performance for a non-recession year since 2003.
In the aftermath of the discouraging GDP figures, a White House spokesperson attempted to portray the news in a more favorable light, asserting that growth exceeded expert estimates and attributing any successes to the president’s policies, including tax reforms and regulatory rollbacks.
However, not all analysts share this optimistic view. While some economic indicators may reveal underlying strength—such as a 2.4% increase in real final sales to private domestic purchasers—many remain cautious. Experts have also warned that the latest Federal Reserve meeting minutes indicated a reluctance among policymakers to lower interest rates significantly, with some speculating that rates may need to rise if inflation persists.
As Trump prepares for his State of the Union address, he faces the daunting task of explaining the economic deterioration during his administration while struggling with ongoing inflation. His early morning message on Friday highlighted his awareness of the political implications surrounding the economic climate as he heads into a pivotal midterm election year.