The Trump Tax Cuts Still Driving Economic Growth
Friday, White House economic adviser Larry Kudlow said that The Trump Administration tax cuts of Y 2017 are still working to boost the economy and fuel economic growth.
“I think the tax cuts are working. I think nominal GDP is much higher than people expected,” Mr. Kudlow said in a TV interview.
“We’re in a good spot here, if you ask me. I hear all this pessimism coming off Wall Street. OK, I understand corrections. Look, we’re getting tremendous increases in growth. We’re running 3% year-on-year. Nobody thought that would be possible and we’re there,” he said.
“I think for all of President Trump’s Quarters, except the very 1st quarter when he just came into office, I think the growth rate has been 3.1% at an annual rate for something like 7 Quarters,” said Mr. Kudlow.
Late last month, the government said the US economy slowed in Q-3 as previously reported, but the pace was likely strong enough to keep growth on track to hit The Trump Administration’s 3% target this year, even as momentum appears to have moderated further early in Q-4.
GDP increased at a 3.5% annualized rate, the Commerce Department said in its 2nd estimate of Q-3 GDP growth. That was unchanged from its estimate in October and well above the economy’s growth potential, which economists estimate to be about 2%
Just after Kudlow spoke, the Atlanta Federal Reserve’s GDPNow forecast model showed that the US economy is expanding at a 2.4% annualized rate in Q-4 as data showed domestic payrolls growth slowed in November.
This was slower than the 2.7% pace for Q-4 GDP that the Atlanta Fed’s GDP program calculated Thursday.
The Labor Department’s closely watched monthly employment report on Friday came against a backdrop of a steep sell-off on Wall Street and a partial inversion of the US yield curve, which have stoked fears of a recession down the line.
Meanwhile, Mr. Kudlow sees healthy economic growth continuing into the future.
“I think you’ll see bigger increases in revenues,” he said
“The supply side tax cuts and the rollback of regulations and opening of energy and so forth, we are producing very significant growth with virtually no inflation,” he said.
“Inflation is coming in under the Fed’s target that may be cause for their reassessment. I think it’s a good position to be in.”
Have a terrific weekend