About half of the drop-off from 2018, Mr. Arnon said, was attributable to the end of the “immediate boost” to the economy from the tax cut package Mr. Trump signed in late 2017. Increased federal borrowing to fund the tax cuts “may account for much or all of the rise in the trade deficit,” Mr. Arnon said. Mr. Trump has said little recently about the trade or budget deficits. If that forecast proves correct, the economy would need to average 4.1 percent growth for the next three quarters to reach Mr. Trump’s 3.2 percent goal for the year. The chairman of Mr. Trump’s Council of Economic Advisers, Kevin Hassett, said growth could be higher than 3.2 percent this year, if Mr. Trump completes a trade deal with China that bolsters American exports.

Source: New York Times March 11, 2019 22:41 UTC