From the Wall Street Journal column Best of the Web
| The Trump economy appears to be cooking. The Federal Reserve Bank of Atlanta has just upgraded its estimate for real U.S. economic growth in the third quarter to a robust 4.1%. This follows a second quarter in which the U.S. economy grew 3.8%, a strong rebound from a first quarter in which the economy shrank by 0.6%. This is a great way to kill inflation if the Federal Reserve can resist the urge to loosen monetary policy again. Letting Americans produce more goods—while not letting Washington produce more money—is the path to affordability. If the president continues to resolve his trade disputes in ways that lessen his tariffs, his regulatory and income tax reforms will take care of the rest and Americans can enjoy an era of prosperity. |
A regional report also brings encouraging news today. The Federal Reserve Bank of New York reports:
Business activity increased at a solid pace in New York State in November, according to firms responding to the Empire State Manufacturing Survey. The headline general business conditions index rose eight points to 18.7, its fourth positive reading in the last five months. New orders and shipments increased significantly. Delivery times lengthened modestly, and supply availability worsened somewhat. Inventories expanded. Labor market indicators improved, pointing to a small increase in employment and a longer average workweek. The pace of both input price increases and selling price increases slowed slightly, but remained elevated. Capital spending plans grew.
We’ll see how long the New York region can thrive with Comrade Mamdani taking office as mayor of New York City and the state’s feckless governor signaling that she’ll accommodate his corporate tax hikes. But nationwide, growth can continue if the president focuses on the part of his agenda that’s been working: reducing government’s role in the economy.
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