U.S. grows at fastest pace since 2014 gains

U.S. GDP

The total value of all US stocks is now equal to 154 percent of the annualized GDP.

So if we get 3 percent (or more) growth in 2018, President Trump can say he's delivered on a key campaign promise.

"We've accomplished an economic turnaround of historic proportions", he said.

He said if the economy continues to grow at this rate, it could double in size 10 years faster than it would have under Presidents Barack Obama and George W. Bush. And in 2015, full-year economic growth almost reached the 3 per cent level being targeted by the Trump administration this year when it hit 2.9 per cent. The rest of the year is likely to see a growth of around 3 percent.

It's not traditional for presidents to comment on economic growth figures before they are released, but President Trump isn't exactly a stickler for tradition. And the report's revisions of 2017 economic data suggest that American households saved significantly more last year than previously believed - a finding that suggests elevated rates of consumer spending could prove sustainable in the medium term. Private-sector economists predict growth will slow to 2.8 percent in the third quarter, according to Bloomberg polling. As businesses and consumers reset on account of lower tax rates, year-over-year spending hikes will dissipate.

Trump also touted a decrease in the U.S. trade deficit in the most recent quarter, calling it "one of the biggest wins". But that's illusory. Exports surged in the second quarter as soybean producers and others anxious about trade wars raced to get goods out of the country before tariffs were likely to go into effect. Consumer spending grew 4 percent, more than estimated, while nonresidential business investment climbed at a 7.3 percent clip.

More news: North Korea Is Reportedly Dismantling Key Missile Program Facilities
More news: European press mocks Trump as 'weak,' 'Putin's poodle' after summit
More news: Antonio Conte set to depart Chelsea

The Fed is widely expected to leave its benchmark rate unchanged at its policy meeting next week and then increase it in September by a quarter percentage point to a range between 2 per cent and 2.25 per cent. The result was boosted by a budget deal at the start of the year that added billions to defense and domestic spending.

Compared to the second quarter of 2017, the economy grew 2.8 percent. Paul Ashworth, at Capital Economics, said that as the government stimulus from tax cuts and higher spending fades, and the Federal Reserve's continued interest rates hikes begin to pinch, "growth will slow markedly from mid-2019 onwards".

Zandi forecast that growth for 2018 will reach 3 percent, which would be the best rate since before the Great Recession.

Trump also seemed to back down on his trade threats this week, after a meeting with European Commission President Jean-Claude Juncker.

"This morning's data confirms that growth has accelerated and that inflation is running close to the target", the report said.

The GDP report released Friday included a revision of previous years' figures. The recent stretch of subpar growth - just over 2 percent annually - is unprecedented.

Related News:



Most liked

Ronaldo given two-year prison sentence over tax charges
Further reports indicate the deal involved Ronaldo avoiding jail if he pleaded guilty to the tax fraud charges. The fact that he is a first time offender also played in his favor in avoiding setting foot in prison.

Senators Working on Bipartisan Bill to Strengthen Russia Sanctions
Democrats are seeking to take control of the House of Representatives and Senate in the November elections from the Republicans. Lawmakers from both parties have raised concerns about Trump's approach to the Russian leader.

US, Russian FMs discuss Helsinki meeting fruits
Prosecutors have said she was in contact with Russian operatives during her time in the U.S. On Thursday, the Russian foreign ministry announced a #FreeMariaButina campaign.

China says threats, intimidation on trade will never work
As of July 17, hedge funds and other futures speculators were the most bullish on the greenback since February 2017, U.S. In early trade Tuesday, the yield on 10-year Chinese government bonds jumped 5 basis points to 3.57 percent.

More Tapes! Trump Shocked To Learn Cohen Recorded Number Of Their Calls
At this point, Cohen has not has any conversations with prosecutors in the Southern District of NY , one source says. In it, Trump and Cohen reportedly discuss paying Karen McDougal , who claims she had an affair with Trump.

48MP Sony IMX586 imaging sensor announced, samples ship September
Sony says this will allow the IMX586 to "capture lovely , high-resolution images even with a smartphone". In addition to this, Sony's also shrunk the pixel size down to an impressive 0.8 μm.

Israel evacuates 800 Syria White Helmets to Jordan: Army
The Syrian government managed to get full control over a strategic territory at the border with Jordan following the operation. Israel seized 1,200 square kilometres of the Golan from Syria in 1967, in a move never recognised internationally.

100 ex-students report sex misconduct by former Ohio State University doctor
Other patients of Strauss' private practice, which was started in 1996, also lodged complaints against him. Mulvin, who wrestled for OSU from 1975 to 1979, said hecould not remember the name of the physician.

Donald Trump invites Vladimir Putin to U.S. despite uproar after Helsinki meeting
It has remained unclear, however, what the president is seeking to accomplish from his negotiations with his Russian counterpart. Coats named Russia, China, Iran, and North Korea as the main threats to United States cybersecurity.

Trump touts success of Putin summit despite continuing criticism
Trump was widely criticized for comments he made after the sit-down Monday with Putin in Helsinki, Finland. Former House speaker and longtime Trump ally Newt Gingrich put it bluntly.

Days after Helsinki summit, Russian Federation shows off Putin's 'super weapons'
Trump's comments in support of arch-rival Russian Federation were condemned by both Democrats and Republicans. Graham said Trump was right to criticize previous administrations for their handling of Russian Federation .

Meghan Markle's Deadbeat Dad Faked Sick To Dodge Royal Wedding, Source Says
The source added, "I think she finds it a little frustrating at times, but this is her new life, and she has to deal with it". According to Kharey, Meghan's had the dress for several months but the designer wasn't sure when she was going to wear it.

Amazon goes to the dogs after Prime Day downtime
Retail think tank Coresight Research predicted that sales will reach $3.4 billion this year, about $1 billion more than last year. It recently announced that the cost of Prime membership would go up, and the shopping day is a way to prove the value.

Bulls closing in on a deal with Bucks' free agent Jabari Parker
As reported by ESPN , Jabari Parker has been signed by the Chicago Bulls to a two-year $40 million contract. Parker, a Chicago native, will be heading back to his hometown to continue his career.

Trump calls the European Union, Russia, and China 'foes' of the US
Russian President Vladimir Putin chairs a Security Council meeting at the Novo-Ogaryovo residence outside Moscow, April 19, 2018. Bolton was scheduled to appear on CNN's " State of the Union " Sunday, but was pulled by White House officials on Saturday.





Most Commented