Financial markets reached a milestone Wednesday as the Dow Jones Industrial average hit a new record high. And market analysts and Trump administration officials predict the stock market will head even higher and the economy will strengthen if Congress cuts taxes.
It was a landmark day for the financial markets with big numbers as the Dow closed at a new record high of more than 23,000.
Myles Udland of Yahoo Finance said, "Overall the market is having its best year since 2013 and the overall environment is probably about as good as it's been since that 2006 period. "
It's been a very strong year. So far, the Dow is up over 17 percent with 26-all time records set since last November. Market analysts say the underpinning of the market is solid and global economic growth is picking up.
"A lot of folks would say right now the economy is in a sweet spot. One person called it as good as it gets right now for the US consumer," Udland explained.
Even President Trump was amazed at the new record high for the Dow, tweeting "Wow!" and displaying a chart showing the market's steady climb upward since his election just under a year ago.
"I think the clarity of having the election over was a big relief to a lot of people. I do think that it's fair to say that his election catalyzed the US consumers," Udland said.
Treasury Secretary Steven Mnuchin said the market's rally is based on reasonably high expectations of getting tax reform done. And he warned members of Congress that the market rally could run into trouble if they fail to cut taxes.
Mnuchin told Politico, "To the extent we get the tax deal done, the stock market will go up higher. But there's no question in my mind that if we don't get it done you're going to see a reversal of a significant amount of these gains."
Earlier this week in a speech at the Heritage Foundation, President Trump said an historic tax cut will unleash a new middle class miracle and revitalize the economy.
"Our tax plan will ensure that companies stay in America, grow in America and hire in America. We will lift our people from welfare to work, from dependence to independence, and from poverty to total, beautiful prosperity," he said.
The White House is pushing hard to get tax reform done by the end the year, but that may not be easy. And as for stocks, analysts say the market will have some corrections, but they believe that over time, it will keep heading higher.