Reside updates: Trump holds Cupboard assembly as report reveals US financial system shrank at begin of his time period

Peter Navarro, particular counselor to the president, tried to spin the GDP report as “very constructive information” for Individuals on Wednesday morning, touting how tariffs are driving a “large quantity” of home funding.

“This was the perfect damaging print, as they are saying within the commerce, for GDP I’ve ever seen in my life. It actually must be very constructive information for America,” Navarro informed reporters on the White Home.

Whereas shopper spending slowed, companies elevated spending, as CNN reported, more likely to get forward of worth will increase attributable to tariffs. However the US financial system noticed its worst quarter since 2022, in accordance with a brand new GDP report from the Commerce Division, registering at a fee of -0.3%. The Dow was down 700 factors, or 1.73%, Wednesday morning. The S&P 500 fell 2% and the tech-heavy Nasdaq Composite slid 2.5%.

CNN requested Navarro why, if the stories are excellent news, President Donald Trump tried guilty former President Joe Biden for an “Overhang” and leaving “us with dangerous numbers” in a social media publish Wednesday morning.

“There’s two issues happening right here,” Navarro mentioned. “We inherited a tremendously dangerous set of financial insurance policies from Joe Biden. The fruit of that ‘poison Biden tree’ is a sequence of spending payments which have drawn our debt far over a fiscal cliff and we’re making an attempt to carry that again with the tax invoice and the reorientation of spending.”

Current evaluation of congressional Republicans’ tax invoice recommend it might add trillions of {dollars} to the deficit over a decade, even with the potential spending cuts being pushed by social gathering management.

Requested about commerce offers, Navarro mentioned: “Offers are coming, simply be affected person,” as he walked towards the West Wing.