Fitch Ratings has apparently reversed its opinion of President Donald Trump’s effect on global economic stability.
Fitch, one of the three major ratings services, issued “a mostly glowing report” Tuesday about the state of domestic finances, CNBC.com explained.
In February, Fitch warned that Trump posed a danger to global economic stability.
“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,” CNBC explained.
The ratings agency says the president's pro-growth agenda would push GDP more than expected. Fitch sees U.S. growth at a 2.3 percent rate in 2016 and 2.6 percent in 2018 — better than the 1.6 percent average GDP rate under President Barack Obama.
"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," CNBC quoted Seville as saying.
However, Fitch did caution investors about trade, and again pointed out that U.S. public debt was reaching dangerous levels.
"Increased trade protectionism and curbs on immigration would be negative for growth over the medium-term," Seville added.
Seville doesn’t expect a downgrade of U.S. debt.
Meanwhile, many other respected economic voices are predicting robust growth and additional stock-market gains amid Trump's blueprint to truly "Make America Great Again."
David Horowitz, author of the best-selling book "Big Agenda: President Trump's Plan to Save America," told Newsmax TV that the market rally since Republican Donald Trump won the election has more room for gains as the president pushes his pro-business agenda.
“There's more upside. Starting from when he was president-elect he started this stock market boom,” he told Newsmax TV's “The Income Generation Show.”
“There will be corrections. There are going to be setbacks along the way like the healthcare which they hurried too fast. If you're looking over the long term of this administration I think the stock market is going to love Trump,” Horowitz said.
The S&P 500 has risen 10 percent since the Nov. 8 election after reaching a record high in early March.
Horowitz said the president will push forward with tax cuts and regulatory changes promised during the election.
“I don't think Trump's agenda is going to be stopped in its tracks. What people forget, I mean, it's all this inside-the-beltway chatter, all of it hysterical. The anti-Trump forces are truly deranged. You can't forget how he resonates with the people,” Horowitz said on "The Income Generation," which airs on Newsmax TV every Sunday at 10 am ET.
(Newsmax wires services the Associated Press, Bloomberg and Reuters contributed to this report).
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