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Media Ignores Great Economic News… Again

Larry Kudlow
As is usually the case when any news is announced that reflects positively on President Trump it is ignored by the establishment media. In this case, the good news is once again about the Trump economy, which grew above forecast, again.

Yesterday the government announced a 2.6 percent annualized rate of gains in gross domestic product from October to December compared with the 2.2 percent median estimate of economists surveyed by Bloomberg.

What this means is that despite the Federal Reserve’s best efforts to kill the Trump economic boom late last year, the U.S. economy cooled by less than expected last quarter as business investment picked up, suggesting growth could be stronger for longer as the Federal Reserve has now slowed its plans to raise interest rates.

The 2.6 percent annualized gain followed a 3.4 percent advance in the prior three months, according to a Commerce Department report Thursday that was delayed a month by the government shutdown and reported by our friends at NewsMax.

The NewsMax analysis says the report shows how Republican-backed tax cuts may have continued to aid growth and help bring the full-year figure to 3.1 percent, just above President Donald Trump’s 3 percent goal. While the expansion is poised to become the nation's longest on record at midyear amid a still-healthy consumer, supportive Fed and robust labor market, the pace could cool amid the trade war, slowing global growth and fading impact of fiscal stimulus.

Meanwhile, inflation remained muted, adding little urgency for the Fed to consider resuming interest-rate hikes. The GDP report showed the Fed's preferred price index rose at a 1.5 percent annualized pace last quarter, below the central bank's 2 percent goal. Excluding food and energy, the index rose 1.7 percent.

Larry Kudlow, President Trump’s National Economic Council Director appeared on on CNBC's "Squawk on the Street" and assessed the latest economic reports this way:

…2018 was a good year. Fourth over fourth, 3.1%. Calendar year over calendar year, 2.9. I would just call it a 3% year. The first half was, what, 3.2, the second half was 3.0. The policies are working. I need to say that. Lower tax rates, deregulation, trade reform, the energy reform. It's working. And I think more of the same. Now, let's not forget, at the beginning of the year, January employment was 300,000 plus. That was a gigantic number. And I think that bodes very well for the first quarter and we'll get off to a good start.

Our friends at Americans for Limited Government also issued an enthusiastic assessment of the latest economic reports, saying:

“America in 2018 enjoyed the strongest economy since 2005, with 2.9 percent growth, validating President Donald Trump’s three-pronged economic policy. Cutting taxes, cutting regulations and cutting out bad trade deals have proven to be the magic wand that is creating unprecedented job growth at what is typically the end of a positive business cycle. President Obama’s tax, regulatory and trade policies strangled America’s economy that is now just being unleashed. Today’s GDP growth number gives hope that the best is yet to come.”

One of the most important positive developments was somewhat buried in the report: The savings rate rose to 6.7 percent from 6.4 percent in the prior quarter, as inflation-adjusted disposable income rose 4.2 percent, the most in three quarters.

In other words, America’s working families are seeing a continued gain in their disposable income, and thus a continued improvement in their quality of life. This is not only good news for America’s working families, it is good political news for President Trump, which is probably why it was buried by the establishment news media.

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