GDP unexpectedly grew strongly by 4.3%, and Trump once again pressured the Federal Reserve to accelerate interest rate cuts.

After the US GDP growth rate in Q3 2025 significantly exceeded expectations, the direction of monetary policy has once again become the market’s focus. The latest data shows that the US GDP annualized growth rate in Q3 reached 4.3%, significantly higher than the market consensus of 3.3%. Against this backdrop, President Trump publicly urged the Federal Reserve to start cutting interest rates as soon as possible to support economic expansion and unleash stronger growth momentum.

In a public statement, Trump said that such strong economic performance itself proves that inflation risks are not out of control, and the Fed should adopt a more accommodative monetary policy. He criticized the current high interest rate levels, believing that maintaining high rates during an accelerating economy would instead suppress corporate investment and consumer demand, weakening the long-term potential of the US economy. This stance clearly diverges from the Fed’s current policy approach, which centers on “inflation fighting as a priority.”

Support for rate cuts is not limited to the White House. Kevin Hassett, former chairman of the US National Economic Council, explicitly stated in an interview with CNBC that the Fed’s pace of interest rate adjustments has fallen behind changes in economic fundamentals. He pointed out that AI-driven productivity improvements in multiple industries are a key reason why current inflation pressures remain manageable. The efficiency gains driven by AI enable the economy to achieve higher growth in a lower inflation environment, providing a practical basis for rate cuts.

Hassett also mentioned that the US’s current trade policies, including tariff measures, have played a positive role in reducing trade deficits and boosting domestic industries. These factors combined make it possible for the US economy to continue expanding under lower interest rates. He believes the Fed should respond more proactively to “hard data” such as GDP growth and productivity improvements, rather than overly worrying about potential inflation expectations.

It is worth noting that the Fed is approaching a critical personnel milestone. Chairman Powell’s term will end in May 2026, and the market generally expects Trump to announce a new Fed chair candidate in the near future. Given Hassett’s strong alignment with Trump on interest rate issues, he is also viewed as a potential candidate.

Against this background, the uncertainty surrounding the US interest rate policy outlook is increasing. Market participants are closely watching GDP data, Fed rate cut expectations, the long-term impact of AI productivity on inflation, and potential shifts in the Fed leadership on monetary policy direction. These factors will jointly determine the future liquidity of the US dollar and the risk appetite of global financial markets.