Trump’s former economic chief predicts ‘golden age,’ blasts Moody’s downgrade

Could the U.S. economy be on the brink of entering a new era of prosperity?

A former top advisor to President Trump certainly thinks so, and he isn’t shy about challenging negative assessments.

Forecasting Economic “Liftoff”

Kevin Hassett, who served as Director of the National Economic Council during the Trump administration, recently shared a remarkably optimistic outlook.

He believes significant economic growth, potentially described as a “liftoff,” is just around the corner.

This isn’t just wishful thinking, according to Hassett.

He points to several factors he sees as paving the way for this economic acceleration.

Current Strength and Future Drivers

Even with current uncertainties, Hassett highlights promising signs already visible in the economy.

Strong jobs numbers are a key indicator he points to.

Furthermore, first-quarter capital equipment investment saw a significant surge.

First quarter capital equipment investment was north of 20 percent, one of the best quarters ever, because all of America knows that the golden age is coming, and we’ve got to start building stuff before everybody else gets in front of us.

This surge in investment suggests businesses are anticipating future growth and preparing for it.

Looking ahead, Hassett emphasizes the importance of upcoming policy clarity.

He specifically mentioned progress on trade deals and more certainty surrounding tax cuts.

These elements, he argues, will lower uncertainty for businesses and unlock further potential.

Dismissing the Downgrade

Hassett also weighed in on the recent decision by Moody’s Ratings to downgrade the U.S. credit rating by one notch.

The move was attributed to persistent fiscal deficits.

However, Hassett was quick to dismiss the significance of this downgrade.

Appearing on FOX Business, he echoed sentiments from Treasury Secretary Scott Bessent.

Sec. Bessent said, ‘It’s a backward-looking thing, penalizing us for all the reckless spending of the Biden administration.’

Hassett aligned with this view, suggesting the downgrade reflects past fiscal decisions rather than the current economic trajectory.

He contrasted this with what he sees as positive policy shifts underway.

According to Hassett, efforts to cut spending, reduce regulation, and promote supply-side growth are setting the stage for a stronger economy.

He confidently stated his belief that the U.S. is poised to have the “best economy on Earth.”

This, he argues, naturally leads to having the “best debt on Earth, too.”

The Timing of the Boom

So, when exactly does Hassett see this economic “liftoff” occurring?

His prediction points towards the latter half of 2025.

During this period, he anticipates growth rates significantly exceeding current levels.

I predict that the second half of 2025 we’re going to see growth way north of three percent and potentially north of four percent.

Such growth, he suggests, would position 2025 as one of the “better years we’ve ever had” economically.

Once the uncertainty he has studied throughout his career is reduced, he believes the economy is set for a remarkable ascent.

With strong jobs and investment numbers already present, Hassett remains convinced that clarity on trade and tax policies will ignite a period of significant and observable growth.

The stage, in his view, is set for a “golden age” of American prosperity.