Just two months ago, Fitch Ratings viewed President Donald Trump as a threat to economic stability — not only in the United States, but for the world.
Now, things appear to have changed.
One of the three major ratings services issued a mostly glowing report Tuesday about the state of domestic finances. Fitch, in a far cry from its dire warnings in February, both reaffirmed the sterling AAA credit rating for the U.S. and raised its outlook for gross domestic product growth.
The firm now expects the U.S. to grow at a 2.3 percent rate in 2017 and 2.6 percent in 2018 — not exactly breakout just yet, but a good deal better than the 1.6 percent average GDP rate under President Barack Obama.
Fitch attributed its outlook in part to the pro-growth Trump agenda.
"The new administration's focus on deregulation and tax cuts has spurred higher business
confidence and would be positive for growth if carried through," Fitch analyst Charles Seville and others said in a report for clients. "Tax cuts are unlikely to generate a lasting and substantial boost to growth, in Fitch's view."