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The US economy grew by 2.0% Annualized rate in the second quarter of 2019, the Bureau of Economic Analysis reported Thursday in a second estimate of gross domestic product.
Thursday's report revised preliminary estimate of 2.1% growth released last month, down by 0.1 percentage points. Forecasters were expecting GDP growth to be revised to 2.0%.
The Trump administration set an annual economic growth target of 3% and, in the first quarter of 2019, real GDP grew by 3.1%.
Deceleration in economic growth in the second quarter is due to growing fears about the possibility of an economic slowdown, which could be a major hurdle for President Trump in his quest for reelection. The bond market this month signaled an alarm about a possible recession, which led the Dow Jones Industrial Average to generate 800 points.
Trump frequently praises the vigor of the economy as an essential accomplishment of his administration and has largely rejected suggestions that a recession may be looming. Despite everything, the president sought to blame the Federal Reserve and its president, Jerome Powell, whom Trump called to succeed Janet Yellen last year.
Trump accused the Fed of curbing economic growth by raising interest rates four times in 2018. However, the central bank cut rates in July for the first time since the 2008 financial crisis.
The Fed's policy-making committee will meet again next month, and in a highly anticipated speech in Jackson Hole, Wyoming, last week, Powell gave no indication as to whether the the central bank may reduce rates again. He said, however, that the central bank "will do the right thing to support the expansion."
The ongoing trade war between the president and China could also weigh on economic expansion. The Trump administration is expected to pay $ 300 billion worth of goods from China with 15% duty as of September 1, with the second wave taking effect on December 15.
Rights have already been levied on $ 250 billion worth of products shipped from China, but last week the president announced that the taxes would be increased from 25% to 30% as of October 1st.
Trump's decision to raise taxes on Chinese products came after Beijing announced $ 75 billion worth of US goods with retaliatory taxes.
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