Tags: bernanke | trump | economic | growth

Former Fed Chair Bernanke: 3 Percent Growth Under Trump 'Not That Likely'

(AP/Manuel Balce Ceneta)

By    |   Monday, 01 May 2017 08:26 AM EDT

Former Federal Reserve Chairman Ben Bernanke doubts that the economy will ever flourish quite as much as President Donald Trump has envisioned.

Asking if he thought growth could hit 3 percent or better, "on a sustained basis, it's certainly possible, but not likely," the two-term central bank leader told CNBC.

Should Congress pass a tax cut, as Trump has proposed, "You might have a bump because of the increased consumer spending," he said.

However, if he was to bet on whether the economy would break the 3 percent barrier, Bernanke said, "I would take the under on that."

Bernanke said he was generally pleased with how the economy has functioned since he left office.

"I think so far so good," he said. "It wasn't too long ago when people on shows like this were saying that we were going to have hyper-inflation and huge stock market bubbles and dollar collapse and all kinds of terrible things were going to come. But in fact it's gone pretty smoothly."

Bernanke blamed sluggish economic growth on volatile global conditions.

"We're not in the same world we were in 20, 30 years ago," he said. "In particular, our workforce is growing much more slowly, so just pure demographics, the number of people available to work is not consistent with 4 percent growth."

However, some of the most respected economic gurus of modern times urge patience.

Meanwhile, veteran financial guru and former Ronald Reagan adviser Larry Kudlow is urging any impatient investors to just give Trump a chance to fully enact his strategies to reform healthcare, spark economic growth and redesign the tax system.

After all, Trump has been in office a relatively short time and has inherited a mountain of problems from the past two decades. “He's trying to fix a lot of problems that have gone unfixed in the last 20 years,” Kudlow explained to CNBC.

Trump “still wants tax reform and healthcare reform. Those are big issues for him.” the Newsmax Finance Insider said.

Meanwhile, many other respected economic voices are predicting robust growth and additional stock-market gains amid Trump's blueprint to truly "Make America Great Again."

David Horowitz, author of the best-selling book "Big Agenda: President Trump's Plan to Save America," told Newsmax TV that the market rally since Republican Donald Trump won the election has more room for gains as the president pushes his pro-business agenda.

“There's more upside. Starting from when he was president-elect he started this stock market boom,” he told Newsmax TV's “The Income Generation Show.”

“There will be corrections. There are going to be setbacks along the way like the healthcare which they hurried too fast. If you're looking over the long term of this administration I think the stock market is going to love Trump,” Horowitz said.

(Newsmax wire services contributed to this report).

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Former Federal Reserve Chairman Ben Bernanke doubts that the economy will ever flourish quite as much as President Donald Trump has envisioned.
bernanke, trump, economic, growth
Monday, 01 May 2017 08:26 AM
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