First-quarter economic growth may have been lackluster, but the kind of growth President Donald Trump is looking for could be just around the corner at least according to one economic model.
The U.S. economy was weighed down to start 2017 by faltering consumer spending that was hindered by a mild winter and higher inflation, among other factors.
That said, The Lindsey Group's Peter Boockvar is still cautious about the second quarter.
"Let's hope," the chief market analyst said.
He pointed out that the Atlanta Fed's initial forecasts have been volatile barometers. For instance, the first-quarter estimate was as high as 3.4 percent at one point. The fourth quarter of 2016 started with a 2.7 percent projection that rose to 2.9 percent, but the final official government revision put growth
In the third quarter last year, the Atlanta Fed's initial estimate was 3.6 percent then fell to 2.1 percent, though the final official number was 3.5 percent.
"The Atlanta Fed estimate is just one of many but you at least have an idea of where they stand today," Boockvar said.
The Atlanta Fed's projection comes following a statement by Treasury Secretary Steven Mnuchin, who said Monday it will probably take two years to get to 3 percent growth. That estimate, though, was for full-year growth.
"There's really three parts that will drive that. First, is tax reform. This will be the most sweeping tax reform we've ever had. The second part is
"And the third part is fair trade, renegotiating the trade deals. We think those three things together will create sustained economic growth of 3 percent or higher," Mnuchin said.
The last time the U.S. economy grew at a rate of at least 3 percent was in the third quarter of 2016. The U.S. economy has also not produced growth of more than 4 percent for a quarter since the third quarter of
The economy has not achieved growth of more than 3 percent for any year since the last recession ended in mid-2009.
Watch: Q1 GDP up .7 percent