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

BlockBeats News, January 21 — U.S. Secretary of Commerce Howard Lutnick said Tuesday that U.S. GDP growth in the first quarter of 2026 is expected to exceed 5%, but also pointed out that 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 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 could be between 4% and 5%. (Jin10)