As the calendar turned from April to May, US economic expansion became the nation’s second-longest period of growth on record.
It has been a slow and steady climb over the past eight years and ten months, but the US economy has continued to grow ever since it crawled out of the recession in 2009.
The central bank has kept borrowing costs at a historical low for nearly a decade and is expected to slow rising interest rates. Meanwhile, President Donald Trump’s economic plan of $1.5 trillion in tax cuts and a new government budget is expected to encourage even further growth.
Economic policy makers hit their target inflation rate of 2% in March. Some sectors have room to grow even further still while others are nearing their peak.
The US-China trade dispute could be a hurdle for continued overall expansion, but if everything stays on track, the US economy is set to have the longest period of growth ever in July of 2019.
The National Bureau of Economic Research has tracked economic statistics since the 1850s, meaning this would be the longest climb it has ever seen in its 170-year history.
Since growth has averaged just over 2% for over eight years, the expansion has not been excessive, but it has kept momentum swinging in a positive direction.
Trump's overall target of sustained economic growth is 3%, which remains a tough goal to achieve as it would require a healthy spike in expansion to see that kind of success. The White House hopes that their corporate tax cuts will spur increased productivity and natural economic progress.
With Trump’s sweeping tax cuts, economists forecast continuing surges in hiring which leads to an increase in household spending, the biggest and most important part of a country’s economy.
As the economy continues to grow, the unemployment rate continues to fall. The current 4.1% unemployment rate is the lowest the nation has seen in 17 years and shows no signs of stopping.
If this trend continues, the lasting legacy of Donald Trump’s presidency could very well be the nation’s economic success.