Lawrence B. Lindsey, a former Federal Reserve governor and presidential economic advisor, wrote in an op-ed for the Wall Street Journal about the economic boom created by President Trump and how, under his leadership, the labor market outperformed that of President Obama and Vice President Biden.
- On unemployment, President Trump beat every prediction the Federal Reserve made for years 2017, 2018, and 2019.
- “In December 2016, the Fed predicted that 2017 would close at a 4.5% unemployment rate. In fact, it ended at 4.1%.”
- “The Fed in 2016 also projected that 2018 would end with 4.5% unemployment, believing further improvement was virtually impossible. But unemployment reached 3.9% in 2018.”
- “Ditto for 2019: The Fed predicted 4.5%, but unemployment fell to 3.5% that year, a multidecade low. Under Mr. Trump, the unemployment rate fell to a level the Fed hadn’t even considered.”
- “The Fed’s 2016 predictions for GDP were 0.7 percentage points too low for 2017, 0.5 points too low for 2018 and 0.4 points too low for 2019.”
- “The Obama recovery, which was subpar in virtually all respects, ultimately underperformed the Fed’s expectations in terms of GDP growth and the unemployment rate, while the Trump portion of the recovery consistently outperformed expectations.”
The bottom line: President Trump beat expectations; Obama-Biden did not.