Tax reform is igniting wage growth: Gary Cohn

U.S. wages jumped last month – up 2.9% -- in the biggest such gain since June 2009, the Labor Department said Friday.

The department also said the economy added 200,000 last month, something the administration attributes to the recent tax cuts.

“One of the real impetuses for our tax reform and tax cut plan was to get real wages to grow in the United States, we haven’t had real wage growth in a long time in the United States,” National Economic Council Director Gary Cohn told FOX Business’ Stuart Varney on “Varney & Co.”

Though Cohn saw the wage growth as a positive sign, he hopes it is the beginning of a long-term trend.

“It’s one month, so I am excited about that but what we need to see is a long-term trend of real wage growth in the United States and hopefully this is the start of a long-term trend of real wage growth.”

The Atlanta Fed forecast for the U.S. economy predicted GDP growth would surge to 5.4% in the first quarter of 2018.

“We’d be very excited if that number is correct, we’d be very happy to accept a number with a five, we’d be very excited if the number started with a four,” Cohn said.

President Trump alluded to a potential Phase Two of tax cuts in a speech to Republican lawmakers in White Sulphur Springs, W.V. on Thursday.

Cohn confirmed that the administration would like to go back and readdress the individual tax cuts.

“Well, look, the president is always trying to deliver for the American workers, the American public. We would really like to make the individual side of tax reform permanent, that’s one thing that we didn’t get done.”