The Commerce Dept reported Wednesday that U.S. gross domestic product grew at a 3.0 percent annual rate in the second quarter, the fastest pace since the first quarter of 2015 and up from a 1.2 percent pace in the January-March period. Economists had expected that second-quarter GDP growth would rise to a 2.7 percent rate.
“On a yearly basis, as you know, the last administration during an eight-year period never hit 3 percent, so were really on our way,” Trump said in his Wednesday speech. “And I happen to be one that thinks we can go much higher than 3 percent. There’s no reason why we shouldn’t.”
Given the slow pace of first-quarter growth, the economy would have to accelerate substantially to end 2017 with an annual gain of 3 percent, an outcome most economists believe is highly unlikely.
Though overall tax cuts could help spur growth, the U.S. economy has slowed in the last decade, based in part on a slowdown in productivity and an aging workforce.
Trump’s campaign promise to cut taxes already faces political headwinds.
The White House and Republican lawmakers have not finalized a plan and the effort comes amid a busy September for Congress. The agenda includes raising the federal debt ceiling and extending the federal flood insurance program that is under financial strain and expected to see heavy claims from Hurricane Harvey.