US to sustain ‘3% growth in next 5 years’

washington — The surge in the US economy in the second quarter shows the US is “well on the path” for four or five years of sustained annual growth of three per cent, said Treasury Secretary Stephen Mnuchin.

The US economy accelerated in the second quarter to the fastest pace since 2014, the government reported on Friday, allowing US President Donald Trump to celebrate his economic policies, including the biggest tax overhaul since the Reagan era.

Mnuchin also said that Trump respects the independence of the Federal Reserve, despite the president’s recent criticism of the central bank for raising interest rates.

In fact, Mnuchin said it was responsible for the Fed to raise rates as the economy grows faster and inflation rises.

Farmers to get $12B subsidy

Meanwhile, US farmers will see the first payments of a $12 billion subsidy program designed to shield them from a burgeoning trade war starting in September, Agriculture Secretary Sonny Perdue said.

“The mitigation payments will be eligible in September in some degree and into October and the fall,” Perdue said on the sidelines of an event at the US Embassy in Buenos Aires. “It depends on when the farmer comes in and applies.”

Trump announced the subsidy this week as he sought to ease anxiety among farmers who feel they will be shut out of important markets in Asia.