Where does the Bush Administration think the U.S. economy is really heading? CNBC's Steve Liesman sat down with the White House economic team, then went straight from the meeting to "Power Lunch" and told CNBC viewers all about it. According to the President’s economic advisors--housing will stabilize. They expect the drag to wane and energy price fluctuations will decline.
Liesman also said, “They’re following the blue chip economic forecast and crowing success on that – saying it’s 3% (growth) this year and likely just under that next year.”
"The biggest threats," they say "are from tax hikes. Also Iraq will cost more than the $110 billion requested, but they didn’t say how much."
On another note – "The White House is aware of all of the revisions lately in economic data," and said they will review the methodology by which its gathered."
Overall Liesman says--it’s a pretty rosy outlook on the economy for next year – no sense of panic or recession coming from President’s economic advisors.