Trump Effect Driving GDP Not Seen for 13 Years
The Trump Economy is doing something not seen since Y 2005 by sustaining economic growth at a 3% or better pace for 3 Quarters running.
Economists have raised Q-4 growth estimates to 3%+ after strong December retail sales and robust revisions to prior months.
The Big Q: Will the trend can continue into Q-1, which is typically weak and is vulnerable to harsh Winter weather.
“It could even grow at 3 percent for the year. The numbers are very strong,” said the chief economist Americas at Natixis
He predicted an above-consensus growth pace of over 4% for Q-4.
Economists in CNBC’s/Moody’s Anlaytics Survey boosted their median fourth quarter GDP forecast Friday by a median 0.4 to 3%.
NatWest Markets raised Q-4 GDP to 3.5 from 2.7%, based on a stronger view of the consumer, and the Atlanta Fed GDPNow shows Q-4 growth now at a pace of 3.3%, up from 2.8% earlier this week.
President Donald Trumppredicted the US economy is “going to start to rock” now that his sweeping tax reform is law.
“It’ll be fantastic for the middle-income people and for jobs, most of all,” President Trump said in the days before the bill was finalized.
US economic growth could go to 4, 5 or even 6%, ultimately.
Steve Forbes recently said that President Donald Trump’s tax cuts will trigger economic growth of at least 3 to 3.5%.
For the past 10+ years, economic growth has usually been below 2%, Mr.Forbes said.
“We’ve had a few Quarters that would go above it or it’d gone 25 miles an hour in a 70 mile hour zone speed zone. Now we’re going to get it up to 40, 45. Good start. And if the administration continues, Trump continues on deregulation and alike, good,” the Chairman of Forbes Media said in a TV interview.
Mr. Forbes said that he thinks The Trump tax cuts will solidify “a 3, 3.5% growth economy.”
Have a terrific weekend.