We’ve seen warning signs over the past few months that economic growth is slowing down. Now it’s official: The latest GDP report shows growth in the last quarter at about 2 percent—well below historic averages.
President Trump’s tax cuts kicked in at the beginning of last year. By last summer the economy was booming.
But now the boom’s worn off. The president blames Fed tightening; most economists blame the trade war.
And, it’s hard to ignore the volatility in our policy environment which gives business what it dreads most: huge levels of uncertainty.
There’s a real danger now that the president could enter reelection with a sluggish economy. He should make a hard pivot back to pro-growth policies, leaning on advisors like Larry Kudlow who helped him deliver the boom of 2018.
A growing economy could be the key to delivering a reelection boom for 2020.