The GPD report for the second quarter of the year in the United States is out and paints a more promising picture, registering an annualized rate of 3% in this period compared to last year’s.
Immediately after the news went out, US President Donald Trump reiterated his stance that the Federal Reserve needs to lower the interest rates as soon as today.
Perhaps in an attempt to prepare for Trump’s tariffs against multiple key partners, businesses piled up in Q1 this year, which resulted in less economic expansion.
The difference in Q2 is quite evident, given the aforementioned 3% increase, as many of those entities scaled back on imports. According to CNN, most experts anticipated a more modest 2% growth.
Consequently, the gross domestic product’s (GDP) rise in Q2 of 3% helps Trump’s agenda to push for an interest rate cut after the -0.5% correction observed in the first quarter of 2025, which was the first decline in three years.
TRUMP: 2Q GDP JUST OUT, WAY BETTER THAN EXPECTED
*Walter Bloomberg (@DeItaone) July 30, 2025
The POTUS was quick to praise the development, and used it as an opportunity to pressure Fed Chair Jerome Powell to cut the rates as he has done multiple times in the past. In fact, in one of those reiterations, Trump urged the most significant rate cut in the history of 3 basis points.
BTC’s price follows the macro developments in the world’s largest economy, and its movements are tightly correlated to the nation’s interest rate policy. Still being considered a riskier asset, it tends to benefit from an environment with lower rates.
This hasn’t stopped it from thriving for the past year or so. However, it has stalled below the most recent all-time high of over $123,000, charted a couple of weeks ago, and many experts believe a potential rate cut could lead to further gains. However, the chances of this happening later today during the FOMC meeting are very slim.