The Trump bump in the U.S. economy that many forecasters had penciled in for next year is looking increasingly iffy.
President Donald Trump’s mounting political difficulties are raising doubts about his ability to push through the tax cuts and infrastructure spending increases that economists had been counting on to lift gross domestic product.
“At the very least, what is very likely is a delay in any form of fiscal stimulus,” Gregory Daco, head of U.S. macroeconomics at Oxford Economics, said. “But there is also a risk that it gets dropped all together.”
If that happens, growth may remain mired in the lackluster rut of 2 percent or so it’s been stuck in over the last eight years, rather than accelerating to Daco’s forecast of 2.7 percent in 2018.
Economists stressed that it’s still too early to make any definitive judgments about what impact Trump’s troubles will have on his policy