Trump claims US is 'economic envy of the entire world'

Trump claims US is 'economic envy of the entire world'

The front-loading of deliveries of soybean and other goods boosted exports in the second quarter, which grew at their quickest pace since the fourth quarter of 2013, sharply narrowing the trade deficit.

The Fed is widely expected to leave its benchmark rate unchanged at its policy meeting next week and then increase it in September by a quarter percentage point to a range between 2 per cent and 2.25 per cent.

"We've accomplished an economic turnaround of historic proportions", Trump told reporters during hastily arranged remarks on the South Lawn of the White House, where he was joined by Vice President Mike Pence and flanked by members of his economic team. But analysts warned that the healthy numbers come with several caveats.

The Commerce Department reports that us gross domestic product rose at an annual rate of 4.1 percent in the second quarter, up from 2.2 percent in the first three months of the year. In other words, can the economy keep growing so strongly in the months and years ahead? To some extent, strong GDP growth today is coming from borrowed money that will have to be paid back in the future.

The rate of economic expansion marked the acceleration from the first quarter of 2018 when the world's largest economy grew at an annual rate of 2.2 per cent.

Business investment grew at a solid 7.3 percent annual rate.

Vittert also weighed in on the issue of Trump's tariffs.

Still, Mr Lynch said he sees the pace of USA growth easing to an annualised rate of 2.9 per cent through the second half of 2018, from 3.1 per cent in the six months through June.

Was It the Trump Stimulus?

He pointed to new tax cuts, de-regulation, increased government spending and the continuing trade negotiations.

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House Speaker Paul Ryan was quick to claim credit, as well, tweeting, "4.1% GDP!"

PNC Bank is forecasting growth of 3.1% in 2018 - assuming that trade tensions dissipate.

Past presidents have generally refrained from mentioning any government economic reports the day before they're publicly released.

The president portrays an economy breaking free of its shackles as his administration cuts red tape and lowers taxes.

But yes, we can talk all day long about GDP numbers all day long, but that doesn't matter if you just got laid off.

But Trump's tax cut was modeled after the Reagan tax cut in 1982. That was a pickup from the first quarter's revised growth rate of 2.2 per cent, the New York Times reported. Ian Shepherdson, the chief economist of Pantheon Macroeconomics, says the Trump administration's ongoing trade fight with China is a big threat to the economy.

As many economists have pointed out, the tax cuts were created to have long term effects focused on capital investment and it will take years for any such scenario to play out. But Federal Reserve officials and outside economists don't expect a permanent upshift.

This is the real key. At a rally at a steel plant in Illinois Thursday, Trump predicted that the numbers released by the Commerce Department Friday morning would be very good indeed, the Wall Street Journal reports. "This isn't a one-time shot".

"We're going to go a lot higher", Trump said.

At the same time, the uncertainty over trade policy may spur some companies to slow investment, resulting in a hit to economic growth in the second half or later.

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