Everything is ready for President-elect Trump and the Republican led Congress to take the reins of this economy. The environment for pro-growth economic policies couldn’t be any better. The Fed Fund rate (short term interest rate) is near zero and the inflation rate has still not reached the Fed’s target of 2%. This is a much better situation than it was in 1980.
The economy wasn’t doing well when Ronald Reagan took office in 1981. The Federal Reserve raised the Fed Fund rate to a whopping 20% (today it’s 0.25%) as they tried to curtail the high 12.5% inflation rate (today it’s 1.6%). The country was also experiencing high unemployment. Reagan’s task was to grow the economy in that volatile environment to create jobs.
The new Trump administration has an economic agenda for the US economy to create jobs as well, but in a much less volatile environment. Our economy today is like someone through a wet blanket over it.