Despite two hurricanes that destroyed large swaths of American cities, we’ve had two consecutive quarters of 3 percent gross domestic product (GDP) growth. Given our recent past, that’s no small feat!
While hurricanes are a terrible form of economic stimulus, the recovery efforts could mean another 3 percent GDP jump to end 2017.
On top of that, unemployment is at its lowest levels since the financial crisis. The U6 unemployment rate, which captures those without work and those who want full-time work but can’t find it, hasn’t been this low since June 2001.
And as we know, market returns are setting records regularly.
It all begs the question – is 3 percent GDP growth sustainable? Many say yes.
Like him or not, President Trump has shown an ability to slash regulations, which helps the economy.
He cut billions in costs associated with President Obama’s clean power plan, the Paris climate accord, oil and gas restrictions on federal lands and more.
President Trump’s pro-growth policies have and will continue to create investment, boost jobs and increase growth. And all of that is before tax reform!
Another sign of growth is in the housing market. New monthly home sales in September 2017 were the highest they’ve been since 1992. And overall, the housing market is building at a pace not seen since October 2007.
All this economic success will likely mean a 0.25 percent rate increase from the Fed soon. But, it’s all part of the (hopefully sustainable) corrective path.