Mnuchin says economy may fall short of Trump's 3% growth target in 2020

• Treasury Secretary Steven Mnuchin said Thursday that disruptions at Boeing are expected to drag on the US economy in 2020.
• That could potentially bring growth to below a key target set early in the Trump administration, he said.
• Trump pledged to deliver gross domestic product growth of 3% or more each year of his term, but it has consistently fallen short.
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Treasury Secretary Steven Mnuchin said Thursday that disruptions at Boeing are expected to drag on the US economy in 2020, potentially bringing growth to below a key target set early in the Trump administration.

In an interview with Fox Business, Mnuchin said economic projections for the year had been lowered because of Boeing and other factors. President Donald Trump pledged to deliver gross domestic product growth of 3% or more each year of his term, but it has consistently fallen short.

Mnuchin estimated trouble at Boeing could chip away a half percentage point from GDP in 2020. In January, the embattled airline manufacturer suspended production of its 737 Max in response to two fatal crashes within a span of five months.

"Boeing has had a big impact on our exports, being our largest exporter," Mnuchin said. "I think that could be 50 basis points if not more."

The Federal Reserve and independent forecasters predict the economy will moderate this year, with growth coming in around or below 2%. GDP expanded 2.3% in 2019, its slowest pace under Trump.

Mnuchin added that the rapid spread of a novel coronavirus would weigh on the global economy, but that it was too early to know to what extent. The outbreak has killed hundreds in its epicenter of China and sickened thousands across the globe, leading to a wave of stringent travel and commerce restrictions.