Contrary to the views most economists, the Trump administration expects the U.S. economy to keep booming over the next decade on the strength of further tax cuts, reduced regulation and improvements to the nation’s infrastructure.
The annual report from President Donald Trump’s Council of Economic Advisers forecasts that the economy will expand a brisk 3.2 per cent this year and a still-healthy 2.8 per cent a decade from now. That is much faster than the Federal Reserve’s long-run forecast of 1.9 per cent annual economic growth.
The administration’s forecast hinges on an expectation that it will manage to implement further tax cuts, incentives for infrastructure improvements, new labour policies and scaled-back regulations — programs that are unlikely to gain favour with the Democratic-led House that would need to approve most of them.
Josh Boak, The Associated Press