U.S. Economy Grew at 3% Rate in 3rd Quarter, Despite Storms
- 7 years ago
U.S. Economy Grew at 3% Rate in 3rd Quarter, Despite Storms
Representative Kevin Brady, Republican of Texas and the chairman of the House Ways and Means Committee, said in a statement on Friday
that “our economy produced solid growth last quarter” while going on to say that tax reform was a way to “continue this growth” and “reinvigorate America’s economy.”
On Friday, Mr. Hassett and the Council of Economic Advisers released projections of how one prospective provision of
the tax plan — a reduction in corporate tax rates to 20 percent from 35 percent — would affect economic growth.
The complication is that faster growth could undermine the party’s case
that tax cuts are needed to add fuel to an economy that is already running with low unemployment — and it could lead the Federal Reserve to increase interest rates more quickly, which could dampen the effects of any tax bill.
The nation’s gross domestic product, a key indicator of economic strength, expanded at an annual
rate of 3 percent in the third quarter, the Commerce Department reported on Friday.
“Keep on rockin’ steady with Yellen at the Fed, and there’s no need for a big, wasteful tax cut.”
The Fed, judging that the economy is growing about as fast as it can, is on course to raise its benchmark interest
rate in December to a level Fed officials have described as likely neither to encourage nor to discourage growth.
Republicans called the report a sign that businesses are already spending more in anticipation of a corporate tax cut, and evidence
that the economy could grow faster over the long term than currently forecast.
Representative Kevin Brady, Republican of Texas and the chairman of the House Ways and Means Committee, said in a statement on Friday
that “our economy produced solid growth last quarter” while going on to say that tax reform was a way to “continue this growth” and “reinvigorate America’s economy.”
On Friday, Mr. Hassett and the Council of Economic Advisers released projections of how one prospective provision of
the tax plan — a reduction in corporate tax rates to 20 percent from 35 percent — would affect economic growth.
The complication is that faster growth could undermine the party’s case
that tax cuts are needed to add fuel to an economy that is already running with low unemployment — and it could lead the Federal Reserve to increase interest rates more quickly, which could dampen the effects of any tax bill.
The nation’s gross domestic product, a key indicator of economic strength, expanded at an annual
rate of 3 percent in the third quarter, the Commerce Department reported on Friday.
“Keep on rockin’ steady with Yellen at the Fed, and there’s no need for a big, wasteful tax cut.”
The Fed, judging that the economy is growing about as fast as it can, is on course to raise its benchmark interest
rate in December to a level Fed officials have described as likely neither to encourage nor to discourage growth.
Republicans called the report a sign that businesses are already spending more in anticipation of a corporate tax cut, and evidence
that the economy could grow faster over the long term than currently forecast.