President Donald Trump's chief economist predicted wage growth in the U.S. will accelerate past 4 percent this year amid a strong labor market, more capital investment and rising productivity.
"What we're seeing is basically a really strong economy with solid wage growth that I think is going to improve this year," Kevin Hassett, chairman of the White House's Council of Economic Advisers, said in an interview Monday on Bloomberg Television.
As companies invest more after tax cuts and the job market tightens, he said the administration "very much" expects year-over-year nominal wage growth that's currently just above 3 percent to exceed 4 percent in 2019, he said. Most analysts have expected wage gains to remain close to 3 percent this year, according to Bloomberg surveys.