Bank of America CEO Brian Moynihan says he expects the economy to flourish this year as President Donald Trump’s tax cuts make the U.S. “more attractive” to overseas companies.
"What I don't think people see that I've seen so far is not only the U.S. reaction, … but outside of the U.S., the view that the U.S. becomes a more attractive place to manufacture and drive to," Moynihan told CNBC.
"As you talk to CEOs outside of the United States, the United States seemingly becomes more attractive," Moynihan said.
The U.S. government approved a tax-code revamp last month that slashed the corporate tax rate to 21 percent from 35 percent.
"I think that will help the U.S. economy," he said.
He said the general economy was in “pretty good shape” and his institution expect it to grow 2.7 percent this year.
Other economic outlooks are more optimistic.
The U.S. economy is on track to expand at a 3.4 percent annualized rate in the fourth quarter of 2017, the Atlanta Federal Reserve’s latest GDPNow forecast model showed.
However, there is a difference of opinion, if you seek it out.
Meanwhile, the U.S. economy is likely to grow in 2018 at its fastest pace in three years, fueled by the biggest tax overhaul since the 1980s, a majority of economists said in a Reuters poll that also showed they expected the boost to be short-lived.
While the $1.5 trillion tax package signed into law by President Donald Trump on Dec. 22 did not lead to a major market reaction, it gave a solid lift to the outlook for the world’s largest economy.
At the same time, poll respondents did not expect the Federal Reserve to deviate from its current guidance of three interest rate increases this year.
The poll of more than 100 economists during Jan. 11-19 showed U.S. annual gross domestic product expanding 2.6 percent this year, compared with 2.4 percent predicted last month. If achieved, the increase would be the biggest since 2.9 percent in 2015.
More than three-quarters of 76 economists who answered an extra question said the predicted benefits from the tax cut plan would start to boost growth significantly this year. But most said that might prove to be short-lived.
“We will likely see a sugar-rush from the tax cuts in early 2018 that fades and offers limited longer-term impact,” said Janney Montgomery Scott Chief Fixed Income Strategist Guy LeBas.
Trump has lashed out at the "fake news media" for ignoring and downplaying his economic accomplishments in the wake of the revelation that the economy created 2.1 million jobs in his first year in office.
Trump vowed during his 2016 campaign for president that he would be “the greatest jobs president that God ever created.”
Employment data recently released show that the economy added 2.06 million jobs during his first full year in office.
Trump also praised the strength of the U.S. economy, the Associated Press reported.
Trump told reporters that the "tax cuts are really kicking in" after Congress passed a package of tax cuts at the end of 2017. He notes that many companies have provided their employees with end-of-year bonuses.
(Newsmax wire services contributed to this report).
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