The gross domestic product grew to 4.1% for the second quarter. The Trump Administration credits lower tax rates, trade reform, business levels are booming, rising wages and more jobs. Creighton University Economist Ernie Goss conditions now look very good.
Goss says, “We have seen very strong growth. Consumers were pushing up spending. Businesses were spending. You take the first year and a half of the Trump Administration and compare it to the last year and a half of the Obama Administration, growth has almost doubled. There have been some good changes but there are some economic head winds.”
Goss says it is the economist’s job to put a gray lining around that silver cloud. He says inflation will tick up and that will slow growth. The Federal Reserve will raise rates. He says there will be a rate hike on September 26th raising short-term interest rates by one-quarter of a percent. He says the economy is moving along at a full head of steam but some steam has come out of that in July.
Goss says some of the growth we saw in quarter two was from exports brought forward from September and October to June. He says we will see a fall-off on exports. Goss would like to see a renegotiation of NAFTA and he believes the U.S. should join the Trans-Pacific Partnership. He says the third quarter numbers should be stronger than normal depending on trade and interest rates.