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Janet Yellen Voices Skepticism on Trump's Projected Growth Rate (3%)

Federal Reserve Chairwoman, Janet Yellen, gave a testimony before the senate banking committee during the 7/13 session. She noted that the Trump administration's projection of 3% growth was challenging. She added that it would be difficult for fiscal policy changes (tax reform) to move the needle much from the average of 2% since the financial crisis. 

Bloomberg.com reports:

"Her skepticism came the day after Mick Mulvaney, the White House budget director, penned an op-ed in the Wall Street Journal reiterating a goal of 3 percent sustained growth, up from the post-recession average of about 2 percent. To get there, the administration has proposed tax reform, deregulation, a welfare overhaul, new trade deals, more abundant energy resources and government spending restraint.
Three percent growth will lead to $2.9 trillion more in government revenue over the next decade and a $7 trillion boost to workers’ salaries, according to Mulvaney.
“The administration has been criticized as unrealistic,” Mulvaney wrote. “That’s fine with us. We heard the same pessimism 40 years ago, when the country was mired in ‘stagflation’ and ‘malaise.”’
Her skepticism came the day after Mick Mulvaney, the White House budget director, penned an op-ed in the Wall Street Journal reiterating a goal of 3 percent sustained growth, up from the post-recession average of about 2 percent. To get there, the administration has proposed tax reform, deregulation, a welfare overhaul, new trade deals, more abundant energy resources and government spending restraint.
Three percent growth will lead to $2.9 trillion more in government revenue over the next decade and a $7 trillion boost to workers’ salaries, according to Mulvaney.
“The administration has been criticized as unrealistic,” Mulvaney wrote. “That’s fine with us. We heard the same pessimism 40 years ago, when the country was mired in ‘stagflation’ and ‘malaise.”’
Her skepticism came the day after Mick Mulvaney, the White House budget director, penned an op-ed in the Wall Street Journal reiterating a goal of 3 percent sustained growth, up from the post-recession average of about 2 percent. To get there, the administration has proposed tax reform, deregulation, a welfare overhaul, new trade deals, more abundant energy resources and government spending restraint.
Three percent growth will lead to $2.9 trillion more in government revenue over the next decade and a $7 trillion boost to workers’ salaries, according to Mulvaney.
“The administration has been criticized as unrealistic,” Mulvaney wrote. “That’s fine with us. We heard the same pessimism 40 years ago, when the country was mired in ‘stagflation’ and ‘malaise.”’
Her skepticism came the day after Mick Mulvaney, the White House budget director, penned an op-ed in the Wall Street Journal reiterating a goal of 3 percent sustained growth, up from the post-recession average of about 2 percent. To get there, the administration has proposed tax reform, deregulation, a welfare overhaul, new trade deals, more abundant energy resources and government spending restraint.
Three percent growth will lead to $2.9 trillion more in government revenue over the next decade and a $7 trillion boost to workers’ salaries, according to Mulvaney.
“The administration has been criticized as unrealistic,” Mulvaney wrote. “That’s fine with us. We heard the same pessimism 40 years ago, when the country was mired in ‘stagflation’ and ‘malaise.”’