Economists say that Trump"s projects do not justify the skyrocketing stock

Economy Jamie Simon
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President Donald Trump’s promises in terms of economic policy do not justify the record stock increases registered on Wall Street since his election.

Or, at least, that’s what showed the results of a survey conducted by the National Association for Business Economics (NABE), a US association specialized in economics.

On the other hand, the survey released on Monday shows that economists are generally more optimistic than they were in December 2016, when it comes to prospects for employment and growth.

The surveyed economists “expect higher oil prices and higher interest rates and wages in 2017,” said the NABE President, Sean Mackintosh.

According to him, analysts expect the US economic growth to reach 2.3% this year and next year to accelerate to 2.5%.

The US stocks broke record after the election of Donald Trump in November and after he took over the oval office in January.

The investors particularly welcome Trump’s promises on tax reform, deregulation and willingness to launch a major infrastructure investment program.

Since Trump’s victory, DJIA stock news index increased by 13%, and the SP 500 was appreciated by about 10%.

According to NABE survey, nearly 70% of the surveyed economists believe that the markets rely too much on these promises, while 26% think the contrary.

On the other hand, nine of 10 economists believe the odds of a recession this year are less than 25%.

On Friday, the US Treasury secretary, Steve Mnuchin, Trump announced that the administration seeks an increase of 3% to 3.5%, compared to 1.5% to 2% today.

Also, Steve Mnuchin estimated that, in the medium term, the stock news market could increase dramatically.