“Enormous Confidence” Driving US Economic Growth
- “President Trump is a growth guy and he has launched a boom that nobody thought possible.”
The National Economic Council Director Larry Kudlow says “enormous confidence” just one of the many factors driving robust economic growth, which he does not expect to stop anytime soon.
“I’ll start with the enormous confidence that you see in the country. That’s very important. People are moving, they’re working, they’re investing. We have not had that in a long time.”
“I think a lot of folks are underestimating the power of lower marginal tax rates, typically on large and small business, and the deregulation program and the energy program that we’ve gone through and the president’s view that business is good,” said Mr. Kudlow.
“There’s no war against business people. Attitudes have changed and I think that amounts to a lot. We have never really seen this kind of confidence movement before,” said Mr. Kudlow, who served as the Trump campaign’s senior economic adviser.
“We haven’t had good, old-fashioned business investment” in years, Kudlow said. “You could probably go back to the year 2000. So it has been a long time,” he said.
“My point is we’re in an economic boom. Frankly, most folks thought it was impossible. Frankly, it’s happened. So last question. It’s a great blessing. Prosperity is a good thing,” Mr. Kudlow said.
Meanwhile, the robust economic reports continued to roll in as Wall Street advanced Wednesday and the DJIA closed at a record for a 2nd day running, after US economic data fueled a rise in US Treasury yields, lifting financial stocks.
- DJIA +54.45 at 26828.39, NAS Comp +25.54 at 8025.07, S&P 500+2.08 at 2925.35
US services sector activity raced to a 21-year high in September and companies boosted hiring, signs of enduring strength in the economy at the end of Q-3.
The upbeat reports Wednesday likely keep the Fed on track to raise interest rates again in December. Fed Chairman Jerome Powell said Tuesday the economy’s outlook was “remarkably positive.”
The Institute for Supply Management (ISM) said its non-manufacturing activity index spiked 3.1 points to 61.6 last month, the highest reading since August 1997. A reading above 50 indicates expansion in the sector, which accounts for 70% of US economic activity.
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