Finance

Fed official: Trump 'definitely' influenced economic growth

A top official at the Federal Reserve said Wednesday that President Trump and the GOP have "definitely" had a positive influence on the economy.

"I definitely think that the political change had an influence; I think that this is a pro-business administration that wanted to pursue strategies that were focused on economic growth," St. Louis Federal Reserve Bank President James Bullard told reporters, according to Reuters.

Specifically, he pointed to the corporate tax cuts and ballooning business sentiment under the president.

Because of these pro-growth policies, Bullard said, the economy is likely to grow 3 percent this year, the news agency reported.

According to Bullard, that rate would make 2018 the second consecutive year of "quite strong growth by the standards of the post-crisis era."

Bullard added that he thinks the economy can keep up a 2 percent annual growth rate.

"As a policymaker I have to assess how much of that is coming through productivity increases that could be sustained going forward, and if I think that's what's happening, then I would revise up my potential growth rate," Bullard said, according to Reuters.

Reuters reports that the Fed has estimated that the surge in growth will taper off in coming years as the stimulus effect from tax cuts abates.

The GOP is working to make the key parts of the previous tax law permanent, as part of three bills the House unveiled Monday.

"Under our new system, we're seeing incredible job growth, bigger paychecks and a tax code that works on behalf of families and American businesses," House Ways and Means Committee Chairman Kevin Brady (R-Texas) said Monday. 

"Now it's the time to ensure we never let our tax code become outdated again."

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