The US economy, while growing, may have fallen short of US President Donald Trump’s elusive 3% growth target.
The trade war between the US and China might be ending in a way favorable to the US economy now, but the damage has already been done. Business investment has been down amid numerous trade disputes between the US and other economic powerhouses. The US Commerce Department is set to release a snapshot of GDP today. That report will likely show how the Federal Reserve’s interest cuts have managed to keep the longest economic expansion in US history going. The US economy has now grown for 11 years in a row, a new record for the country.
The effects of economic stimulus do appear to be slowing down. However, the gains that resulted from Trump’s huge 2018 tax cuts appear to be fading. Trump predicted that those tax cuts would help the economy maintain a consistent 3% growth rate, but that goal has been missed.
The report from the Commerce Department follow comments by Fed Chairman Jerome Powell that the Fed expects “moderate economic growth to continue.” Powell went on to bring up a few risks to that growth, namely the recent novel coronavirus outbreak in China.