The “Trump economy” reportedly may be doing something not seen since 2005 by sustaining economic growth at a 3 percent or better pace for three quarters in a row.
Economists have raised fourth-quarter growth estimates to 3 percent or better after strong December retail sales and robust revisions to prior months.
The question is whether the trend can continue into the first quarter, which is typically weak and is vulnerable to harsh winter weather, CNBC reported.
"It could even grow at 3 percent for the year. The numbers are very strong," Joseph LaVorgna, chief economist Americas at Natixis, told CNBC.
He predicted an above-consensus growth pace of over 4 percent for the fourth quarter.
Economists in CNBC's/Moody's Anlaytics Survey boosted their median fourth quarter GDP forecast Friday by a median 0.4 to 3 percent. NatWest Markets raised fourth quarter GDP to 3.5 percent from 2.7 percent, based on a stronger view of the consumer, and the Atlanta Fed GDPNow shows fourth quarter growth now at a pace of 3.3 percent, from 2.8 percent earlier in the week.
President Donald Trump has predicted the U.S. 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,” Trump said in the days before the bill was finalized.
U.S. economic growth “could go to 4, 5 or even 6 percent, ultimately,” Trump predicted.
“We are really going to start to rock,” Trump told reporters last month, according to Bloomberg.
For his part, investment guru Steve Forbes recently toldNewsmax TV that President Donald Trump’s tax cuts will trigger economic growth of at least 3 percent to 3.5 percent.
For a decade, economic growth has usually been below 2 percent, 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 and editor-in-chief of Forbes Media told Newsmax TV’s “The Income Generation Show.”
Forbes told host David Scranton he thinks the Trump tax cuts will solidify “a 3, 3 and a half percent growth economy.”
(Newsmax wire services contributed to this report).
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