Haters gonna hate… 

Apparently, you can bully the global economy into submission. GDP for Q2 came in at a fat 3.0%, blowing past the 2.3% estimate and steamrolling the -0.5% from Q1 like it owed someone money.

(Source: Giphy) 

The left said tariffs would nuke the economy. Economists cried recession. Paul Krugman probably lit another scented candle. Instead, the economy responded by punching imports in the face (down 30%) and letting consumer spending carry the weight… because if there’s one thing Americans are good at, it’s spending money like it’s borrowed. Which, let’s be honest, it probably is. Exports dipped 1.8%, but who cares? Imports cratered. That math works out just fine for GDP optics. And while consumer spending rose 1.4%... not Biden-era coke bender levels, but solid… it was enough to remind Wall Street that tariffs don’t automatically lead to soup lines and depression. 

(Source: Giphy) 

Naturally, in classic Donnie Politic branding, the man took to Truth Social faster than Powell could find his spine: “2Q GDP JUST OUT: 3%, WAY BETTER THAN EXPECTED! ‘Too Late’ MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!” And he’s not wrong. Core PCE inflation cooled to 2.5%, down from 3.5% last quarter. That’s basically the Fed’s white whale, and it’s getting harpooned. 

Still, though cracks are visible. Final sales to private domestic purchasers… a Fed-favorite for actual demand… rose just 1.2%, the slowest in nearly two years. Residential investment fell 4.6%, because 7% mortgage rates tend to dampen the mood. Oh, and government spending didn’t lift a finger either… federal outlays dropped again. And yet, here’s the real takeaway: Trump’s tariffs didn’t kill the economy. They restructured it.

(Source: Giphy) 

For instance, companies front-loaded inventory in Q1 to avoid “Liberation Day” tariffs, which nuked imports and tanked GDP. That reversed in Q2 as the dust settled and business owners adjusted to the new normal… one where America doesn’t roll over whenever the Saudis threaten oil prices. Of course, Wells Fargo economists are still clinging to their recession forecasts to make them look smarter than everyone else, but look around… the markets are saying otherwise. 

Which means, while Powell gave everyone the “That’s a no for me dawg…” yesterday, it’s safe to say that the economy is definitely humming. Sure, it’s a little bruised, a little chaotic… but it’s humming, nonetheless. For now, keep your eyes on this story and place your bets accordingly. Until next time, friends…

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.