U.S. economy grew faster than expected in first quarter, the first since Trump's tax cuts

[DonViejo]

Source: The Washington Post



By David J. Lynch April 27 at 8:32 AM

The U.S. economy grew at an annual rate of 2.3 percent in the first three months of 2018, the Commerce Department said Friday.

The results were slightly above Wall Street analysts’ forecasts of 2 percent annual growth rate and represented an expected slowing from the fourth quarter’s 2.9 percent growth rate.

The $20 trillion economy also turned in a better showing than most recent first quarters, which government reports have struggled to accurately assess because of seasonal issues. Financial market reaction was subdued in early trading.

The Commerce Department report was the first since President Trump’s tax cut took effect on January 1. The centerpiece of the tax overhaul was a reduction in corporate taxes aimed at boosting investment and jobs. So far, the results are mixed. The Commerce Department report showed a robust contribution from business investment, which rose more than 6 percent.

Read more: https://www.washingtonpost.com/news/business/wp/2018/04/27/u-s-economy-grew-faster-than-expected-in-first-quarter-the-first-since-trumps-tax-cuts

[louis c]

1. "Grew Faster Than Expected"...Bullshit

When the tax give away to the uber wealthy and corporations passed last year, we were hearing shit like 4% to 5% growth from Trump and his allies.

Deregulations, which put consumers at risk as well as our health and safety and this mega tax giveaway, which doubled the deficit and put the bond market at risk, wasn't all done for 2.3% growth in GDP.

This is not "faster than expected", it's a mega disappointment.

[unblock]

3. the market's reaction is often the best indicator of how data compares to expectations.

in this case, the market's unusually meh. dow is down 5 points at the moment.

yawn.

[forgotmylogin]

6. It's hard for corporations not to "grow" when you give them free money...

in the form of tax breaks. Automatic increase in their profit margins.

[LiberalLovinLug]

10. Exactly. The test is how much this will filter down to jobs and wages

Or how much fatter some Cayman Island bank accounts will grow.

[wishstar]

2. That will guarantee interest rate hikes will continue as expected

[unblock]

4. the market is expecting 2 or 3 more hikes by the end of the year

http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html

[Tom Rinaldo]

5. Accurate headline would be "Slowed down less than expected"

"The results were slightly above Wall Street analysts’ forecasts of 2 percent annual growth rate and represented an expected slowing from the fourth quarter’s 2.9 percent growth rate."

But the real story is that even after a tax cut economic growth slowed. This bodes horribly for future growing deficits.

[elleng]

9. Right.

[Upstate One]

7. Trump promised 4.0% growth. Headlines should reflect that

This number is much lower than *Trump* expected.

[elleng]

8. U.S. Growth slowed in early 2018.

*Still, the economy ended up puttering along just a bit above the average yearly growth rate that it had registered since the recession ended nearly nine years ago.'>>>

https://www.nytimes.com/2018/04/27/business/economy/gdp-economy.html?

[IronLionZion]

11. Yeah, but not nearly as fast as the year before the tax cuts

So they must have had very low expectations for it to exceed expectations