Trump Says U.S. Economy Could Grow At 20% Rate Without Forcing Fed Hike

According to CNBC, President Donald Trump said Monday that the U.S. economy could grow at annualized rates as high as 20% and argued that such growth should not prompt the Federal Reserve to raise interest rates. He made the comments during an Oval Office event announcing agreements aimed at lowering prescription drug prices, saying, "We could have a GDP of 14, 15, 16 and 20," and adding that growth does not cause inflation. Trump also said the U.S. should have the lowest interest rates anywhere in the world as he continued to press for lower borrowing costs. The Federal Reserve held its benchmark rate steady at 3.5% to 3.75% in July, with three policymakers dissenting in favor of a quarter-point increase, and many Fed watchers expect the central bank to raise rates at its September meeting. The Bureau of Economic Analysis said real GDP rose at a 1.5% annualized rate in the second quarter of 2026, down from 2.1% in the first quarter.