Posted on 09/27/2018 7:46:20 AM PDT by SeekAndFind
The U.S. economy grew at a robust annual rate of 4.2% in the second quarter, the best performance in nearly four years, though economists believe growth has slowed in the current quarter partly because of a drag from trade.
The performance of the gross domestic product, the country’s total output of goods and services, was unchanged from an estimate the Commerce Department made in August, the government reported Sept. 27.
The strong GDP performance has been cited by President Donald Trump as proof that his economic program is working.
“We’re doing much better than anybody thought possible,” Trump said at a Sept. 26 news conference.
However, a big part of that growth reflected a temporary rush to ship soybeans and other U.S. exports out before penalty tariffs triggered by Trump’s get-tough trade policies took effect.
Economists believe growth has slowed in the current quarter to between 3% and 3.5%, still a solid pace. While trade boosted GDP by 1.2 percentage point in the second quarter, due to a surge in exports, it is expected to trim growth by around 1 percentage point in the third quarter.
Still, economists believe the country is on track for annual growth this year of around 3%. That would be the best performance since 2005, three years before the 2008 financial crisis pushed the country into the worst recession since the 1930s. The country is currently in the 10th year of an economic expansion, the second-longest in history. But growth has averaged a lackluster 2.2%, making this the weakest recovery in the post-World War II period.
Trump often noted that performance when he campaigned for president, blaming the weakness on Obama administration economic policies. He pushed a $1.5 trillion tax cut through Congress last December and has emphasized deregulation and vowed tougher enforcement of trade agreements as ways to boost growth.
The administration is projecting growth will return to sustained rates of 3% or better over the next decade. However, others disagree with that assessment, forecasting growth will slow sharply in coming years as the impact of the tax cuts and increased government spending this year begin to fade. There is also an expectation that rising interest rates from the Federal Reserve will temper growth.
The Fed pushed its key policy rate up for an eighth time on Sept. 26 to a new range of 2% to 2.25%.
As he has done recently, Trump criticized that move, but Fed Chairman Jerome Powell told reporters at a news conference on Sept. 26 that outside criticism would have no impact on the Fed’s efforts to follow its mandate of promoting maximum employment and stable prices.
The Fed indicated that it planned to stick with its plan to raise rates one more time this year and another three times in 2019.
The government’s third and final look at second quarter GDP showed only minor and off-setting changes. Consumer spending, which accounts for 70% of economic activity, was unchanged at a solid growth rate of 3.8%. Business investment grew at a strong 8.7% rate, up slightly from last month’s estimate of an 8.5% growth rate.
Obozo said it was impossible without a magic wand................
The Obama Recession is a thing of the past
I still say we need to thank former President Obama for the size of this economic expansion. After all if Obama hadn’t forced through his bone headed policies the economy would never have had the head room for this kind of expansion.
Valerie Jarrett would agree with you..............
“However, a big part of that growth reflected a temporary rush to ship soybeans”
I recall that they also dismissed the previous quarter’s stellar growth as a one-off. Trump must live a charmed life.
Forget everything else.
I keep reading that - what makes it the worst recession since the 1930s? I lived through the 1981 recession - inflation was over 10%, unemployment was over 10% and the mortgage interest rates were up around 18%. I graduated in 1981 with an MBA from Arizona State University (then ranked 25th in the US) and I remember that there were very few jobs available (it took me until 1983 to find a full-time job).
What made the 2008 recession so bad was that Obama did all the Keynesian things to try and fix it. It wasn't until the Republicans took over the House and Senate and did NOTHING of what Obama wanted that things started to get better. As always, government doing NOTHING is better than the government trying to fix the economy.
That is what is working now. President Trump has done several things to get the government out of the business of business.
We can all thank Obama for the growth number. The worse off you are, the more you can “grow”.
My health isn’t going to improve (grow) much over the next year. But my neighbor who just had a heart attack is hopefully going to get MUCH BETTER (health will grow a lot) in that time.
Obama’s regulations and positions were like the heart attack. Trump probably would have created growth in any case, but after Obama there’s a well tested plan Trump was able to follow to make us MUCH BETTER.
They always have to throw shade at Trump. It’s just an accident... It’s a one-off spurt... It can’t be repeated... on and on. I seriously doubt that extra shipments of soybeans could account for that big of a jump in GDP.
Did anyone see these headlines in the newspapers and tv news?
RE: Did anyone see these headlines in the newspapers and tv news?
It was in the RADIO NEWS. At least on the stations that I tune to.
Ovomit, you didn’t build that!
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