US Economic Advisor Says US GDP to Top 3%

Stronger economic data recently signals a continuation of the 3% GDP growth rate, Kevin Hassett, an economic advisor to President Donald Trump, said Monday on CNBC.

“The first quarter is usually a little bit low. I think there’s almost more upside than downside risk going forward on the economy,” said Hassett, chairman of the Council of Economic Advisers. “Our internal numbers at CEA got up to around 3% for the first quarter last week with some of the good news on retail sales.”

The Trump White House has used 3% growth as a yardstick for success of the president’s economic agenda, which included tax cuts and business deregulation. The economy nudged past that number when measured from the fourth quarter of 2017 through Q4 of 2018.

Last week, economists surveyed by CNBC/Moody’s Analytics Rapid Update raised their first-quarter growth estimates by 0.3 percentage point to a median 2.4%, following a sharp increase in March retail sales. Their median forecast for Q1 was as low as 1% earlier in the quarter after the longest government shutdown ever. Sentiment was also muted coming into 2019 after stocks suffered their worst year in about a decade.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza