Trump economic advisor projects US growth above 6%

A top economic advisor to U.S. President Donald Trump has projected a sharp acceleration in U.S. economic growth, saying the country could see GDP expansion exceeding 6% if conditions linked to the conflict in Iran improve.

Kevin Hassett, speaking on “Sunday Morning Futures,” said the U.S. economy could experience significant expansion driven by increased capital investment.

"I think we really could be looking at numbers north of four, north of five, north of even six [percent], because there’s so much capital stock growth right now," Hassett said.

He also pointed to the potential for falling fuel prices if oil shipments begin moving more freely through the Strait of Hormuz, a key global energy route.

"That's going to help put prices down relatively quickly," he said.

"Now, there's a little bit of a time lag from that. We've got to get the boats to move from the Persian Gulf to especially Asia, where jet fuel prices are so high, and that can take a month or two but once, basically the gusher opens, then we expect that oil prices could drop relatively quickly and certainly ahead of the election.

The U.S. launched “Operation Project Freedom” on May 4 to facilitate the passage of ships through the Strait of Hormuz, though it was suspended the following day after President Trump said the initiative had been paused at the request of Pakistan and several other countries.

By Sabina Mammadli