Billionaire businessman and philanthropist Ken Langone says President Donald Trump deserves credit for fueling a robust economic resurgence.
"This economy is booming," the co-founder of Home Depot told CNBC.
"I think he's made a lot of moves that are constructive to the economy," said Langone, a longtime supporter of GOP candidates who was not always a fan of Trump.
Langone said "every indicator" for the moment is showing a clear path for economic growth.
"Deregulation is having a profound impact of the mindset of businesspeople" who are more willing to invest and grow their companies, which in turn translates into a stronger economy, said Langone, also founder and chief of investment bank Invemed Associates.
Meanwhile, Wall Street delivered another set of milestones Thursday as a wave of buying sent U.S. stocks solidly higher, driving the Dow Jones Industrial Average above the all-time high it closed at in January. The S&P 500, the benchmark for many index funds, also hit a new high, eclipsing the peak it reached last month.
“Some of the economic data that came out today continued to show strength,” Lindsey Bell, an investment strategist with CFRA, told the Associated Press. “Given the strength in the economy, backed by the stimulus from tax reform as well as just fiscal stimulus in general, that should be able to offset some of the impact that we’re going to get from tariffs as we go into the end of the year.”
To be sure, a string of reports on Thursday showed the labor market is getting stronger, consumers are increasingly optimistic and manufacturers are expanding, adding to signs that gross domestic product remains on track for a solid performance in the third quarter, Bloomberg explained.
The Labor Department’s weekly tally of applications for unemployment aid was lower than expected, with claims slipping last week to 201,000. That’s the lowest level since November 1969.
An economic index from the Federal Reserve’s bank in Philadelphia also topped forecasts, and the Conference Board’s index of leading economic indicators, designed to anticipate economic conditions three to six months out, rose 0.4 percent last month.
The economy is nonetheless facing some headwinds, including an intensifying trade war that could weigh on consumer moods and lift inflation as the Trump administration proceeds with tariffs on $200 billion in Chinese goods starting next week. The Federal Reserve is expected to raise interest rates next week, which could boost borrowing costs for businesses and consumers.
Material from AP, Bloomberg and Reuters were used in this report.
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