2026-01-21 01:22:37

Breaking news from the Davos Forum. U.S. Secretary of Commerce Gina Raimondo has made a statement — she expects U.S. GDP growth to exceed 5% in the first quarter of 2026. Sounds promising, but she quickly added that current U.S. interest rates are too high, which is holding back the economy's true potential.

What did she say? "Interest rates should be lower so that the economy can truly take off." In her view, once interest rates are cut, the same $3 trillion U.S. economy could even grow at 6%. The implication is clear — current policies are self-imposing constraints.

Interestingly, Raimondo's forecast is more optimistic than that of U.S. Treasury Secretary Janet Yellen. Yellen was more conservative at the same forum, estimating that the U.S. real GDP growth in 2026 might be between 4% and 5%. The divergence between the two officials somewhat reflects differing judgments on the room for interest rate cuts.

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OnchainHolmes

· 5h ago

Another show of "I want to cut interest rates," these two guys are singing different tunes. Will cutting to 6% make it take off? Just listen, and when the time comes, they'll blame others again. Cutting interest rates, it's more appealing to talk about than actually doing it.

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MevTears

· 5h ago

Here comes the old trick of promising rate cuts again, sounds good at 6%, but what about reality? A rate cut feels good temporarily, but inflation is a crematorium. Does the Federal Reserve have no clue? Lutnick's words are just trying to pressure Powell, a typical case of talk to loosen policy. Two officials are playing good cop and bad cop, both paving the way for rate cuts. What’s the use of GDP figures looking good? The wallets of crypto holders are the real measure. I just want to ask, who benefits the most from a rate cut? It’s definitely not retail investors. This set of arguments was heard last year, and this year someone else is continuing to say the same. High interest rates are a drag, but what about inflation caused by excessive liquidity? Selective amnesia?

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SadMoneyMeow