US Economic Growth and Key Political Developments in December 2025
The US GDP rose by an annualized 4.3% in the third quarter of 2025, marking the strongest growth in two years. This increase was driven by consumer spending, exports, and government spending. Former President Trump credited tariffs for the robust economic numbers; however, the Supreme Court is currently weighing legal challenges related to these tariffs.
Despite the strong GDP growth, the Conference Board consumer sentiment index fell in December for the fifth consecutive month, marking its longest decline since 2008. Meanwhile, the Federal Reserve cut interest rates for the third time in 2025 earlier in December. Policy deliberations remain ongoing in response to a softer jobs market.
Newly released files concerning Jeffrey Epstein include references to Trump, highlighting a claim of a 1990s flight involving Epstein and a 20-year-old woman, with no indication of the woman's status as a victim or any wrongdoing by Trump.
In legal and policy matters, the Supreme Court blocked Trump's bid to deploy the National Guard to the Chicago area, limiting domestic military use. Additionally, the Department of Veterans Affairs barred abortions for veterans, including in cases of rape or incest, following a Department of Justice memo questioning the legality of such procedures.
