Tags: kudlow | economic | growth | gdp | soft

Kudlow: First-Quarter Economic Growth May Be 'Soft'

(Andrey Popov/Dreamstime)

By    |   Wednesday, 11 April 2018 05:23 PM

White House economic adviser Larry Kudlow said on Wednesday that U.S. economic growth may be "soft" in the first quarter, but should rebound over the remainder of the year, adding that the Federal Reserve was a "good growth partner right now."

"We may have a soft first quarter, but the rest of the year you're going to get 3 or 4 percent growth," he told CNBC. 

The National Economic Council Director also praised the central bank's current economic strategy.

He spoke shortly after minutes of the central bank’s last policy meeting on March 20-21 released on Wednesday showed. that all of the Federal Reserve’s policymakers felt that the U.S. economy would firm further and that inflation would rise in the coming months.

The readout of the meeting, at which the Fed unanimously voted to raise borrowing costs by a quarter percentage point, also showed that policymakers were wary about the impact of the Trump administration’s trade and fiscal policies.

“All participants agreed that the outlook for the economy beyond the current quarter had strengthened in recent months,” the Fed said in the minutes. “In addition, all participants expected inflation on a 12-month basis to move up in coming months.”

"My view on this is the Fed is behaving responsibly. They're going to stick to a plan and I think Jay Powell doesn't believe that better economic growth causes inflation," he said.

"I think the Fed is a good growth partner right now. I'm not going to make a clear interest rate

For its part, the U.S. economy likely expanded at a 2.0 percent annualized rate in the first quarter in the wake of the March payrolls data released on Friday, the Atlanta Federal Reserve’s most recent GDPNow forecast model showed.

The latest estimate on gross domestic product was slowerthan the 2.3 percent growth pace calculated on April 5, theAtlanta Fed said.

(Newsmax wire service Reuters contributed to this report).

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White House economic adviser Larry Kudlow said on Wednesday that U.S. economic growth may be "soft" in the first quarter, but should rebound over the remainder of the year, adding that the Federal Reserve was a "good growth partner right now."
kudlow, economic, growth, gdp, soft
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2018-23-11
Wednesday, 11 April 2018 05:23 PM
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