President Trump is pointing the finger at Democrats and Federal Reserve Chair Jerome Powell for the lower-than-expected growth reported by the Commerce Department for the final quarter of 2025.
The department said gross domestic product grew at an annualized rate of 1.4% during the final three months of 2025, a decrease from 4.4% in the third quarter.
GDP grew by 2.2% for the full year in 2025, down from 2.8% in 2024.
Mr. Trump, writing on Truth Social, said Democrats suppressed economic growth with a 43-day shutdown that began in October and lasted until mid-November. Senate Democrats refused to vote for spending bills because they wanted the GOP to restore super-sized subsidies in the Obamacare program.
“The Democrat Shutdown cost the U.S.A. at least two points in GDP. That’s why they are doing it, in mini form, again. No Shutdowns! Also, LOWER INTEREST RATES. ’Two Late’ Powell is the WORST!!!,” Mr. Trump wrote on Truth Social.
Economists agreed that the shutdown likely played a key role in holding down growth.
SEE ALSO: U.S. economy grows at 1.4% rate in the fourth quarter, slower than economists expected
“The economy will probably bounce back in early 2026, but it isn’t harmless to do these prolonged shutdowns,” Heather Long, the chief economist at Navy Federal Credit Union, said on social media.
She also said Mr. Trump’s duties on imports and “anemic hiring” left many Americans feeling uneasy about the economy.
“2025 was a decent year for GDP and the stock market,” she wrote. “But there was a lot of uncertainty on Main Street.”
The economy is playing a central role in the political jockeying ahead of November’s midterm elections.
Mr. Trump says Americans can expect large tax refunds this year due to the GOP’s “One Big Beautiful Bill” from last year.
He’s also secured big-dollar investments in auto and pharmaceutical manufacturing from foreign nations and companies that wanted to reduce their tariff rate.
Yet Democrats and other critics say Mr. Trump has fallen short of his pledge to actually decrease consumer prices. Inflation has cooled over the past year but remains above the Fed’s target of 2%.
Critics of Mr. Trump’s trade program say tariffs mainly increase costs on American firms and consumers, and the Supreme Court might strike down a major plank of the president’s tariff program altogether.
The White House on Friday highlighted positive economic metrics, including robust private sector-led growth and strong consumer spending, despite doomsday projections earlier in Mr. Trump’s term. The administration also predicted great things for the coming year.
“Even with the Democrat Government Shutdown dragging the country down last fall, GDP growth for 2025 smashed the Federal Reserve, Congressional Budget Office, and International Monetary Fund’s ‘expert’ predictions,” White House spokesman Kush Desai said. “As President Trump’s proven agenda of tax cuts, deregulation, tariffs, and energy abundance continues taking effect and as trillions in investments continue pouring in, America’s economic comeback is set to only accelerate in 2026.”
Mr. Trump met with the nation’s governors at the White House early Friday, shortly after the release of the report. He asked the media to leave at the start of the meeting, saying the gathered leaders needed to speak candidly.
Mr. Trump has sparred with some of the governors in recent days, including Maryland Gov. Wes Moore — a Democrat and possible 2028 contender.
Mr. Moore was spotted at the White House gathering, sitting behind U.S. Trade Representative Jamieson Greer.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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