Sep 1, 2026
On Monday, President Donald Trump said the U.S. economy could achieve growth rates as high as 20%, while arguing that the Federal Reserve should not raise interest rates in response to such expansion. Speaking at an Oval Office event on prescription drug prices, he stated that strong growth does not cause inflation.
According to the source, growth at those levels would be unprecedented in modern history. Data from the Bureau of Economic Analysis, which goes back to 1947, shows only one quarter with annualized real GDP growth of 20% or higher: the third quarter of 2020, when the economy grew at a 34.9% annualized rate as businesses reopened after widespread Covid-19 shutdowns. That surge followed a 28% annualized contraction in the prior quarter. The second-highest quarter was the first quarter of 1950, with a 16.7% annualized gain….
