Don’t look now, but U.S. growth forecasts are moving higher. That’s helping to support U.S. stocks.
Projections for U.S. economic growth from two Federal Reserve banks have risen in recent weeks. The Federal Reserve Bank of New York on Friday forecast that gross domestic product will rise 3.8% in the fourth quarter, up from a forecast of 3.2% a week earlier. A separate measure from the Federal Reserve Bank of Atlanta forecast 3.4% growth last week. Research firm DataTrek noted that the rival forecasts are outpacing projections from human economists, who on average expect 2.7% growth for the quarter.
Even if the less optimistic Atlanta Fed model is correct, it would be the best quarter for the U.S. economy in more than three years.
3.8% is starting to get real close to the 4% level that Trump promised during the campaign which was completely against the “new normal” of 2% achieved by the Obama Administration. The “wise men” told us to just get used to it. I think I’d rather get used to THIS new normal instead.