"Turns out that 'new normal' of the very sluggish 2 percent growth as far as the eye could see for America was wrong and is wrong," the House Ways and Means Committee chairman told "Squawk Box." "Policies do matter."
The "new normal" of slow economic growth, high unemployment, and government debt problems was a term coined by economist Mohamed El-Erian in 2009 following the 2008 financial crisis.
The idea of a "new normal" was popularized by Obama White House economist Larry Summers.
Brady said everyday American workers are beginning to see wage increases, most notably due to the passage of the new tax law, which he took the lead on crafting.
"A worker who is seeing $350 more in their paycheck right now ... all of that is incredibly helpful," the Texas Republican said.
During Trump's State of the Union address on Tuesday, the president celebrated the booming economy and unemployment rates reaching new lows. "There has never been a better time to start living the American dream," Trump said in his speech.
Some argue whether Trump can take full credit for the economy's performance. Brady said that economic sentiment began to improve in anticipation of Trump's policies.
"Now, we're seeing the result of policies of ... a competitive tax code," Brady said, adding, Trump "shook up" the economy.