White House economic adviser Kevin Hassett predicts that US economic growth will defy expectations again in Y 2019 because of a business investment boom and President Donald Trump’s trade strategy.
“We’re definitely going to be at 3 or above 3 for next year as well,” Mr. Hassett said on TV Wednesday
The Council of Economic Advisers chairman is hopeful that the sluggish housing market won’t hinder growth.
GDP has risen an average 3.3% through the 1st 3 Quarters of Y 2018 and is expected to gain 3% in Q-4.
Last week 2 regional Federal Reserve banks cut their estimate of fourth-Quarter economic growth after the US trade gap hit its highest level in 10 years and domestic payrolls growth slowed.
The US economy is expanding at a 2.4% annualized rate in the fourth quarter as data showed domestic payrolls growth slowed in November, the Atlanta Federal Reserve’s GDPNow forecast model showed last Friday.
This was slower than the 2.7% pace for Q-4 gross domestic product that the Atlanta Fed’s GDP program calculated on Thursday.
Meanwhile, the New York Federal Reserve’s Nowcast model showed the US economy is growing at a 2.44% pace in Q-4 as data showed the U.S. trade gap hit its widest in 10 years in October and domestic payrolls growth slowed in November. This was slower than the 2.50% rate calculated by NY Fed’s program the previous week.
Late last month, the government said the U.S. economy slowed in the third quarter 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 second estimate of third-quarter 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%
Mr. Hassett admitted the “boom” in business investment “kind of leveled off a bit,” but he expects it to resume as companies bring back profits stashed overseas.
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