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Some in Washington are not invested in achieving 3% growth, claims Budget Director Mulvaney

  • Mulvaney defends the Trump administration's position that getting rid of Obamacare will have a positive impact on GDP.
  • The OMB chief says some people in Washington are invested in the United States not achieving 3 percent growth.

Office of Management and Budget Director Mick Mulvaney on Friday defended the Trump administration's position that getting rid of Obamacare will have a positive impact on GDP.

There are some people in Washington who are invested in the United States not achieving 3 percent growth, Mulvaney told CNBC's "Squawk Box."

"Because if we do, it's going to make the previous administration look bad and have long-term political ramifications," Mulvaney said.

He added there's a "disincentive" for Americans to work buried in Obamacare.

Mulvaney wrote an op-ed published Thursday in The Wall Street Journal on how the Trump administration can achieve that growth. He dubbed it "MAGAnomics," a mashup of President Donald Trump's slogan "Make America Great Again" and the word economics.

Before the Senate Banking Committee on Thursday, Federal Reserve Chair Janet Yellen said she doesn't believe Trump's plan will be enough to get 3 percent.

Productivity growth is hard to move, and labor force growth is on the decline, Yellen said.

Senate Republicans unveiled a revised version of their legislation to repeal and replace Obamacare on Thursday. The House passed a health-care overhaul bill in May.

A vote on a motion to proceed with the Senate Republicans' bill is expected to be held next week. That would allow amendments to be offered for the bill and put it on track to a final vote. Mulvaney says he thinks the bill will pass.

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— CNBC's Dan Mangan contributed to this report.