The economy glides, but fading ‘Trump bump’ casts a shadow over US 2020 race
Despite the good short-term figures, for which Donald Trump takes full credit, one year of 3% growth won’t match his claim that the US could reach even higher — and stay there
Washington — US President Donald Trump’s bet that tax cuts and a gush of government spending would smooth the path to a second term may falter as cracks begin to appear in a decade-old recovery. After a nine-year bull run, stocks have wobbled. Capital investment has recently weakened despite a corporate tax cut meant to boost it. Home sales have softened for several months running, and analysts expect the economy to slow as Trump’s first-term stimulus fades leaving a higher debt burden behind. Republicans campaigning for next week’s mid-term elections have struggled to leverage what is arguably the strongest economy in a decade, weighed down by the president’s low ratings among more well-off suburban voters in otherwise Republican-leaning districts. Looking ahead, Trump or any Republican successor may have it even harder running a 2020 presidential campaign against the headwinds of slowing growth and less confident markets. “All good things must eventually come to an end,” Wells Far...
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