A new White House report says the U.S. economy is growing faster than expected, even though the annual gains of 3% that President Donald Trump promised to voters have yet to be achieved
WASHINGTON — .
“The overall evidence of the report as we see it is that three years into the Trump administration the U.S. economy continues to outperform pre-2016 election expectations," said Tomas Philipson, acting chairman of the White House Council of Economic Advisers. The economy under Trump saw a bump in growth in 2018 following the tax cuts that were signed into law during his first year in office. Trump pledged at the time that the roughly $1.5 trillion in tax cuts over 10 years could propel growth upwards of 3%, if not “4, 5, and maybe even 6%." In fact, growth topped out at 2.9% in 2018, matching the 2015 rate before Trump became president.
But Trump's tax cut was not part of that forecast — and the budget deficit is 42% — or $301 billion — higher today than the CBO estimated at the time. Also, the interest charged on 10-year U.S. Treasury notes is half of what CBO predicted, meaning that it is cheaper for the government and consumers to borrow than what government economists believed it would be.
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