GDP growth sustainable, could go higher
The "blocking" economic growth in the first quarter is "absolutely" sustainable, Kevin Hassett, financial advisor to President Donald Trump, said Friday at CNBC.
The gross domestic product in the first quarter increased by 3.2%, according to an initial reading of the Finance Directorate for that period, which was more than expected and was the first Once since 2015 the first quarter GDP grew by 3%.
Hassett, chair of the financial advisers, said the Trump administration had already forecast 3.2% economic growth this year.
"Maybe we would revise it," he said on "The Exchange, referring to the 201[ads1]9 forecast. "The number [first-quarter] was three-tenths lower because of the government's closure and … the first quarter tends to be low because the winter weather is not really considered right in the statistics."
"You add everything, this is really sparkling news and suggests that the upside risk is very high for GDP this year," he says.
Growth growth was driven by a smaller trade deficit and the largest accumulation of unsold goods since 2015. They are both regarded as temporary boosters, which can ultimately weigh on the economy later this year, due to Morgan Stanley's economists expecting GDP to slow to 1.1% in the second quarter.
Hassett agreed However, in this case he said that there was no need for concern.
"Revenue is growing very high and consumption has not been," said "Our expectation is that the shelves will be filled, but they will be emptied out, and the production will not go down the way it normally does when you get a warehouse girl."
"Consumers have their consumption Retrieve income," He added.
Hassett is not the only Trump administration that takes a win. Earlier Friday, the National Economic Council Director Larry Kudlow called 3.2% GDP growth "an exhaust number". However, he still insisted that the Federal Reserve cut interest rates.
"The rate of inflation continues to fall lower and lower," Kudlow said on CNBC's "Squawk on the Street" on Friday. "Even according to Fed's own advocates, from the chairman on the down, it can open the door for a goal-oriented reduction."
– CNBC's Michael Sheetz and Reuters contributed to this report.
