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Sustainable GDP growth could rise



First quarter "blockbuster" economic growth is "absolutely sustainable," said Kevin Hassett, an economic adviser to President Donald Trump, on CNBC on Friday.

9. " The number [first-quarter] was three-tenths lower due to the government's stoppage and … Low because the winter weather is not really factored into the statistics. "

" You add that this is all blockbuster news and suggests that the risks to GDP this year are very high, "he added.

The growth spurt was fueled by a lower trade deficit and the largest accumulation of unsold goods since 2015. Both are seen as temporary boosters that could ultimately put a strain on the economy this year, Morgan Stanley Economists are at the forefront Gross domestic product will slow to 1.1% in the second quarter.

Hassett agreed that with strong inventory growth, people would take a break in the next quarter, but said that there was no cause for concern in this case.

"Income is growing very fast and consumption is not "Our expectation is that the shelves will be filled, but they will be emptied and production will not be shut down that way "As is usually the case when you receive a stock increase."

"Consumers are consuming income," he added.

Hassett is not the only official in the Trump administration to drive a winning round. Earlier this Friday, National Economic Council Director Larry Kudlow said GDP growth of 3.2% was a blowout figure. However, he still insisted that the Federal Reserve cut interest rates.

"Inflation continues to fall," Kudlow told CNBC "Squawk on the Street" on Friday. "Even in the Fed's own words, the chairman could open the door to lowering key rates."

– CNBC's Michael Sheetz and Reuters contributed to this report.
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