U.S. economy has best quarterly growth rate since 2014

The U.S. government announced a 4.1 percent growth rate in the second quarter of 2018.

It was the best quarterly growth rate since 2014.

One local economist is satisfied with the growth, but warns there may be trouble ahead.

"I have to say it is growing at a pretty brisk pace. There are some warning signals though underneath all of the good news," said Ernie Goss, Economist at Creighton University.

The good news: unemployment is below four percent nationally, manufacturing and banking are doing well, and wages are beginning to rise.

"We’ve seen wages, begin to grow at a better pace. Now, a better pace is still not where we need to see them. We’re seeing wages grow by about 2.8 percent, that is hardly above inflation. So it does need to rise but it is rising that’s the good news," said Goss.

How did this growth happen? Many experts are pointing to a tax measure the president signed in late 2017.

"A lot of it did come, in my judgment, from reduced regulations but also the tax reform bill that was passed which really boosted economic growth, particularly whats going on in corporate America," said Goss.

Goss does see some negatives as well.

President Trump’s ongoing trade war with neighboring countries has resulted in agriculture prices going down, especially livestock, soy beans and corn.

"We need international sales. So if we have these rising tariffs, that’s problematic for the Nebraska agricultural sector," said Goss.

Goss is also concerned with the national debt, which has risen 16 percent since this time last year.

President Trump’s Tax Cut Act poses to increase the deficit by 1 trillion dollars over the next ten years.

The increase in government spending tends to help the economy in the short term.

"Some of it is what I’d call a sugar high. It is coming off those tax cuts. We are seeing some real issues in terms of trade. Now if the president is successful, in bringing down these trade restrictions, trade barriers, tariffs, if he is successful then it is going to be some very good numbers in the weeks and months ahead," said Goss.

Looking ahead, Goss says two things to keep an eye on are what happens with trade as well as interest rates, with the federal deficit continuing to grow.