White House economic adviser Larry Kudlow said on Thursday that it is possible for U.S. economic growth to reach 5 percent for at least a short period of time.
The U.S. economy has grown about 2 percent a year since a recession ended in 2009.
Kudlow, in an interview with Fox Business Network, added that a second phase to overhauling the U.S. tax system is not likely to be immediate.
He said he expected to see more concrete details on the plan next year.
The Commerce Department revised its first estimate of economic growth in the fourth quarter of 2017 to 2.5 percent, down 0.1 percent from its earlier estimate. The economy grew 2.3% through 2017, up from 1.5% in 2016.
“I think it’s possible,” he said, “to be in the three to four percent growth zone,” he said.
“The last three quarters we picked up from under 2 [percent] to 3.1% at an annual rate. Now three quarters is not a lifetime, I get that, but it’s a good start,” Kudlow said.
For its part, the Atlanta Federal Reserve’s most recent GDPNow forecast model showed the U.S. economy is on track to grow at a 2.8 percent annualized rate in the first quarter following the latest data on construction spending and manufacturing activity.
The latest estimate on gross domestic product was faster than the 2.4 percent growth pace calculated on March 29, the Atlanta Fed said.
"Will we get 5 percent forever? No. But there's a catch-up here," Kudlow told Fox Business Network.
"Any economist will show you the long-term trend line for GDP versus the actual now: We're like several trillion dollars below where we should be based on the long-term trend lines. I want to get back to that full potential," he said.
"President Trump is saying America is open for business," Kudlow explained. "Animal spirits have already started to jump under this president and his policies and therefore I hope for more of the same," he said.
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