The United States economy accelerated over the summer, the Commerce Department reported on Tuesday, with gross domestic product (GDP) rising at an annualized 4.3% in the third quarter — the fastest pace in two years and well above forecasts. GDP measures the total value of goods and services produced across the economy.
President Donald Trump took to Truth Social to attribute the unexpected gain to his tariff policy, writing:
"The TARIFFS are responsible for the GREAT USA Economic Numbers JUST ANNOUNCED…AND THEY WILL ONLY GET BETTER! Also, NO INFLATION & GREAT NATIONAL SECURITY. Pray for the US Supreme Court!!! President DJT."
But the stronger GDP print was tempered by weakening household sentiment. The Conference Board's consumer confidence index fell in December for the fifth straight month — the longest continuous decline since 2008 — signaling caution among consumers despite the headline growth numbers.
Those mixed signals complicate the Federal Reserve's path. Earlier this month the Fed implemented its third interest-rate cut of the year amid signs of a cooling labor market, but policymakers remain divided about the appropriate next steps as growth and sentiment pull in different directions.
Legal and Political Headlines
A newly released tranche of documents related to Jeffrey Epstein includes multiple references to President Trump, including a claim by a senior U.S. attorney that Mr. Trump was on a 1990s flight with Epstein and a 20-year-old woman. The files do not indicate whether the woman was a victim of any crime, and inclusion in the records is not evidence of criminal wrongdoing.
Separately, the U.S. Supreme Court on Tuesday declined a request that would have allowed the president to deploy National Guard troops to the Chicago area — a decision that limits the administration’s efforts to broaden domestic military deployments in disputes with several Democratic-led jurisdictions.
Policy Changes and Personal News
The Department of Veterans Affairs will no longer provide abortions to veterans, including in cases of rape or incest, following a Department of Justice memo concluding the practice lacked a firm legal basis.
Former Republican senator Ben Sasse announced on X that he has been diagnosed with stage-four pancreatic cancer, calling the prognosis a "death sentence."
Press freedom groups and advocates have also warned of an uptick in violence against journalists since President Trump returned to office, raising concerns about the safety of reporters covering political developments.
Taken together, these developments span economic, legal and social fronts as the year closes, leaving policymakers and the public to weigh promising growth against broader signs of strain and controversy.
