U.S. Secretary of Commerce: Current interest rates are too high, suppressing stronger economic growth

GateUser-6433627c · 2026-01-20T23:34:52+00:00

U.S. Secretary of Commerce Howard Lutnick predicts that Q1 2026 GDP growth will exceed 5%, but emphasizes that current high interest rates are suppressing economic growth. He believes interest rates should be lower to promote prosperity, and growth could even reach 6%. This forecast is higher than the expectations of U.S. Treasury Secretary Bessant.

GateUser-6433627c

2026-01-20 23:34:52

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On January 21, U.S. Secretary of Commerce Howard Lutnick said on Tuesday that the U.S. GDP growth rate in the first quarter of 2026 is expected to exceed 5%, but also pointed out that the current U.S. interest rates are too high, suppressing stronger economic growth. Lutnick stated at the World Economic Forum in Davos, Switzerland: “Our interest rates should be lower so that the economy can truly prosper. I believe the GDP will grow by over 5% this quarter, which is very significant for the $3 trillion U.S. economy. If interest rates were lower, the growth rate could even reach 6%. What is currently holding us back is our own policies.” It is worth noting that Lutnick’s growth forecast is his personal opinion, higher than the expectations of U.S. Treasury Secretary Janet Yellen, who at Davos said that the actual U.S. GDP growth in 2026 might be between 4% and 5%. (Jin10)

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