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U.S. Commerce Secretary: Current Interest Rates Too High, Holding Back Stronger Economic Growth
BlockBeats News, January 21: U.S. Commerce Secretary Howard Lutnick said on Tuesday that he expects the U.S. GDP growth rate to exceed 5% in the first quarter of 2026, but he also pointed out that the current U.S. interest rates are too high, dampening stronger economic growth.
Lutnick said at the World Economic Forum annual meeting in Davos, Switzerland: "Our interest rates should be lower so that the economy can truly prosper. I believe that GDP will grow by over 5% this quarter, which is very significant for the $30 trillion U.S. economy. If the rates were lower, the growth rate could even reach 6%. What is currently holding us back is our own policy." It is worth noting that Lutnick's growth rate prediction is his personal view, higher than the expectation of U.S. Treasury Secretary Benson, who said in Davos that the actual U.S. GDP growth rate in 2026 may be between 4% and 5%. (FXStreet)
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