Will America’s economy overheat in 2018?
The labour market is the healthiest it has been for at least a decade. But inflation remains low
USUALLY politicians pretend that good economic news on their watch is no surprise. But America’s recent growth figures have been so positive that even the administration of President Donald Trump has allowed itself to marvel. “It’s actually happening faster than we expected,” mused Mick Mulvaney, the White House budget chief, in September, after growth rose to 3.1% in the second quarter. (Mr Trump in fact came to office promising 4% growth, but the goal now seems to be 3%.) Mr Mulvaney warned that hurricanes would soon bring growth back down. Instead, in the third quarter, it rose to 3.3%—a figure celebrated with more conviction. The administration’s initial caution was wise: quarterly growth figures are volatile, and few economists expect growth above 3% to carry on for long. Yet there is no denying that the economy is in rude health.
This article appeared in the Finance & economics section of the print edition under the headline “The weight of expectations”
Finance & economics
December 16th 2017- Will America’s economy overheat in 2018?
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From the December 16th 2017 edition
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