US economists more upbeat, see Trump tax cuts extended: NABE
foxbusiness.comPresident-elect Donald Trump nominates Key Square founder Scott Bessent as his pick for Treasury secretary.
As President-elect Donald Trump prepares to retake the White House in January, the National Association of Business Economics (NABE) is more optimistic on the outlook for the U.S. economy.
«NABE panelists’ forecasts for economic growth in 2024 and 2025 are higher than their previous projections,» said NABE President Emily Kolinski Morris, global chief economist at Ford Motor Co., in the group’s November outlook released Monday, which was surveyed from Oct. 29 through Nov. 8.
Ford is part of the 38 professional forecasters from companies including Wells Fargo Securities and FedEx, to name a few, that see gross domestic product rising by 2.7% this year, a jump from September expectations of 2.6%. For 2025, growth estimates rose to 2.0% from the initial 1.8% September estimate.
A combination of moderating inflation, more balanced risks and a Federal Reserve in easing mode are driving the improved economic sentiment.
«Panelists look for the Committee to gradually but consistently lower its target for the federal funds interest rate, cutting the target by a quarter-percentage point in December, followed by a full percentage point in 2025,» they noted.
TOP ECONOMIST WARNS ABOUT RECESSION TRIGGERS
Policymakers expect interest rates to end the year around 4.4%, falling to 3.4% by 2025, according to the Federal Reserve’s September projections. As for GDP, their estimate is for 2% growth for this year and next.
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President-elect Donald Trump speaks during an election night event at the Palm Beach Convention Center in West Palm Beach, Fla., on Nov. 6, 2024. (Joe
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