The Trump administration expects the US economy to grow around 3% while pushing the Federal Reserve to continue cutting interest rates, with Treasury officials arguing that supply-side growth will reduce inflationary pressures.
Joe Lavorgna said deregulation and pro-growth policies have created an inflation-free economic boom, thus providing room for monetary easing even as GDP growth remains strong.
The statement came as markets assessed the implications of a strong third-quarter GDP reading of 4.3%, supported by consumer spending and exports, for the direction of interest rates next year.
Trump has openly urged the Fed to cut rates if the economy is doing well, while criticizing market concerns that strong growth will trigger rate hikes.
However, Fed officials recently forecast only one rate cut next year, amid a
