Archive · 5 Sep 2026
Trump Rate-Cut Push Promises 15% Growth Amid Inflation Warnings
President Trump wants the Federal Reserve to make borrowing money cheaper.
He believes this could make businesses and people spend more and help the economy grow extremely quickly.
He said growth could reach 12% to 15%.
A jobs report showed that the United States added 162,000 jobs in August.
Economists say strong job growth can sometimes make prices rise faster.
They worry that lower interest rates could add even more money to the economy and worsen inflation.
Trump’s advisers believe artificial intelligence could make workers more productive.
Other economists say expecting such enormous growth for many years is too optimistic.
President Donald Trump urged the Federal Reserve to cut interest rates, saying cheaper borrowing could lift US growth to 12%–15%.
August nonfarm payrolls rose by 162,000, while July’s reported job losses were revised away.
Economists warned that injecting more cash into the economy could intensify inflation and argued the Federal Reserve may need to delay or reverse rate cuts.
Trump said economic success does not cause inflation and criticized markets for falling over inflation concerns.
Trump’s economic advisers remain optimistic that artificial intelligence will raise productivity, while economists called sustained, exceptionally high growth unlikely.
- Who
- President Donald Trump, the Federal Reserve, Trump’s economic advisers, and independent economists.
- What
- Trump renewed his call for lower interest rates and predicted that they could produce 12%–15% economic growth, while economists warned of higher inflation.
- When
- The demand followed the release of the August jobs report; the article does not provide a specific publication date.
- Where
- The comments were made in the Oval Office and concern the United States economy.
- Why
- Trump argues that cheaper borrowing would unleash stronger growth, while economists say additional cash could intensify inflation.
Trump Administration
Economists
Interest-rate policy
Trump Administration
Trump wants the Federal Reserve to cut rates, arguing that cheaper borrowing could generate unprecedented economic growth.
Economists
Economists say lower rates could increase the flow of money and worsen inflation; some believe the Federal Reserve should delay cuts or potentially raise rates if inflation remains high.
Inflation and job growth
Trump Administration
Trump rejects the idea that the August jobs gain could create inflationary pressure, saying that success does not cause inflation.
Economists
Economists maintain that stronger employment and additional economic demand can contribute to inflationary pressures.
Artificial intelligence and growth
Trump Administration
Trump’s economic advisers expect artificial intelligence to improve productivity and support higher growth.
Economists
Economists say sustained growth at the levels Trump predicted is wildly optimistic and should not be the basis for planning.
- August payroll growth
- Nonfarm payrolls increased by 162,000.
- Growth forecast from Trump
- Trump said lower rates could produce GDP growth of 12%, 13%, 14%, or 15%.
- Federal debt
- The article says US national debt has surpassed USD 40 trillion.
- 10-year Treasury rate
- The 10-year US Treasury note rate reached 4.79% on Friday.
- Economic approval rating
- An Associated Press-NORC poll placed Trump’s economic approval rating at 32% in mid-summer.
- 2018 comparison
- Trump’s economic approval rating was 50% when Republicans last faced midterm voters in 2018.
- Technology argument
- Trump’s economic team says artificial intelligence could raise productivity and boost growth.