Trump deserves some credit for this booming economy

Trump deserves some credit for this booming economy

The growth "was mostly offset by a drag in inventories (-1.0pp) that seems likely to reverse in the third quarter, stated Goldman Sachs in a report".

The numbers were driven by consumers who began spending the tax cuts Trump signed into law past year and exporters who have been rushing to get their products delivered ahead of retaliatory tariffs.

It's not traditional for presidents to comment on economic growth figures before they are released, but President Trump isn't exactly a stickler for tradition.

Personal consumption expenditures increased 4 percent while business investment jumped 7.3 percent, and government spending was up by 3.5 percent.

President Donald Trump, who ahead of Friday's release of the gross domestic product report had promoted the notion that second-quarter growth would be robust, declared victory. Growth was in line with economists' forecasts and significantly higher than the revised 2.2 per cent reported in the first three months of the year.

The average gain over the first half of the year was only 2.2 percent, short of the increases seen in 2016 (2.7 percent) and 2017 (2.5 percent).

At an event on Thursday, Trump said of the GDP number, "If it has a 4 in front of it, we're happy".

Priyanka Chopra walks out of Salman Khan's Bharat
Priyanka and the American singer have been dating for more than two months and now reports suggest that the couple is engaged . The director stated that the actress has opted out owing to a very special reason and the team is happy for her decision.

President Trump has said he wants to see GDP growth rise to 3% or more for 2018. The last time the economy grew at a higher rate was 5.2 percent in the third quarter of 2014.

In other words, foreign companies appear to be importing as many goods as they can from the US before their own governments retaliate against Trump's tariffs with duties of their own.

It also showed that inflation, which has been lacklustre in recent years, rose by 2% according to the Fed's preferred measure, which is tied to consumer spending, except on food and energy. The result was boosted by a budget deal at the start of the year that added billions to defense and domestic spending.

"The second quarter was a strong quarter, but it was juiced up by the tax cuts and higher government spending", said Mark Zandi, chief economist Moody's Analytics. The president's team expects the economy to keep growth at a solid pace after 2018 as well.

The President is upset that the USA central bank has raised interest rates twice so far this year, but it is precisely the Trump administration's inflationary fiscal policies that have forced the Federal Reserve to tighten monetary policy faster than it would otherwise.

"Any administration would tout a strong GDP report like today's, but if it's not reaching workers' paychecks, which it isn't, then cease the applause and get to work on policy to reconnect growth to much more broadly-share prosperity", he said.

The current economic expansion, which began in June 2009, is now the second-longest on record but also the weakest. The GDP revisions did not change that story. Annual growth has averaged just 2.2 percent since mid-2009 through the end of previous year, the same as previously reported.

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